Nevin Shetty Guilty: How A Software Company CFO Lost $35 Million In Crypto Scheme

A federal jury has determined that Nevin Shetty, a 41-year-old financial executive from Washington State, committed wire fraud by diverting $35 million in company funds into a cryptocurrency venture he secretly controlled. The conviction marks another cautionary tale about the dangers of unchecked authority in emerging digital asset markets.

The Setup: A Policy Ignored

When Shetty took on the CFO role at a private software firm in March 2021, the organization was in active fundraising mode. Leadership implemented clear investment guidelines: newly acquired capital must flow exclusively into conservative vehicles like money market accounts. The policy was designed to protect investor interests while the company focused on its core business operations.

Paradoxically, Shetty himself participated in drafting these restrictions. Yet by February 2022, he and a partner had launched HighTower Treasury, a cryptocurrency investment platform. Within weeks, he executed a decisive move: transferring $35 million of his employer’s cash into their newly created entity.

The timing proved suspicious to the DOJ. The company had begun questioning Shetty’s performance and hinted at potential termination. Rather than face severance, he accelerated his unauthorized financial maneuver.

The Collapse: Promises Turn To Losses

HighTower Treasury deployed the diverted funds into a high-yield DeFi lending protocol promising 20% returns. The arrangement stipulated that Shetty’s platform would retain 14% while remitting 6% back to the software company.

Initially, the strategy seemed viable. The first month generated $133,000. Optimism quickly evaporated. By May 13, 2022, the entire investment position had deteriorated to zero—a complete loss in less than four months.

When Shetty disclosed the catastrophe to colleagues, the company immediately terminated him and notified federal authorities. The FBI launched a comprehensive investigation that eventually led to prosecution.

Justice: Conviction And Sentencing Ahead

On November 7, 2025, following a nine-day trial and ten hours of jury deliberation, Nevin Shetty faced four counts of wire fraud conviction. Each charge carries a statutory maximum of 20 years imprisonment, though federal sentencing guidelines rarely impose consecutive terms for related offenses.

Judge Tana Lin scheduled the sentencing hearing for February 11, 2026. During that proceeding, the court will weigh relevant factors including the loss magnitude, Shetty’s leadership role in orchestrating the scheme, and any prior criminal record. The guidelines provide judges discretion to impose sentences substantially below statutory maximums based on individual circumstances.

This case underscores persistent risks within decentralized finance protocols and the regulatory blind spots that ambitious executives continue to exploit.