Ex-CFO Nevin Shetty Gets 2 Years for $35M Crypto Wire Fraud
A federal judge in Seattle sentenced former startup chief financial officer Nevin Shetty to two years in prison for wire fraud tied to diverting approximately $35 million in company funds to a cryptocurrency venture he controlled, according to a Thursday notice from the U.S. Department of Justice (DOJ).
The DOJ said Shetty transferred the funds in 2022 to the HighTower Treasury platform, which he operated as a side business. The movement of funds occurred before a broader market downturn in crypto, after which the unauthorized transfer came to light.
Prosecutors stated that Shetty carried out the transfer without the knowledge of executives or board members at the Seattle-based startup and used the capital to place it in high-yield decentralized finance lending protocols advertising returns of 20% or more. The investments generated $133,000 in the first month, but subsequent market declines linked to the collapse of the Terra ecosystem drove losses.
According to the DOJ, by May 13, 2022, the value of the cryptocurrency investments had fallen to nearly zero. Shetty then informed two fellow executives of the transfer and was immediately terminated.
A grand jury indicted Shetty on wire fraud charges in May 2023. He was found guilty on four counts in November 2025 following a nine-day jury trial. In addition to the prison term, the court ordered Shetty to repay the misappropriated funds and imposed three years of supervised release after he serves his sentence.
Former FTX CEO appeal remains pending
Shetty’s conduct in 2022 preceded the collapse of cryptocurrency exchange FTX, which led to the arrest and conviction of former CEO Sam “SBF” Bankman-Fried. Bankman-Fried received a 25-year prison sentence in 2024 and has filed an appeal. As of Friday, the U.S. Court of Appeals for the Second Circuit had not issued a decision after hearing arguments in November.
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