Ex-CFO Jailed for $35M Crypto Fraud That Sank Firm

- Former CFO Nevin Shetty sentenced to two years for embezzling $35 million. - Stolen funds channeled into a high-risk crypto venture that collapsed, sinking the firm. On March 7, 2026, a court sentenced former CFO Nevin Shetty to two years in prison for embezzling $35 million from his employer to bankroll his failed cryptocurrency project, HighTower Treasury. This case highlights significant financial misconduct tied to the volatile crypto sector and left Shetty's former company in severe distress. In 2022, Shetty secretly transferred the $35 million to HighTower Treasury, a venture he designed to deliver annualized returns exceeding 20% through decentralized finance (DeFi) lending. While the initiative promised capped returns to his employer, Shetty planned to pocket any excess profits for himself. However, market turbulence from the Terra ecosystem's collapse caused the project to unravel within months. Although the project initially returned $133,000 in its first month, losses mounted rapidly, leading Shetty to confess the scheme to his employer. As a result, the company fired him, faced major financial strain, and laid off 60 employees. In November 2025, Judge Tana Lin convicted Shetty on four counts of wire fraud. Although prosecutors sought a nine-year sentence, the court imposed a two-year prison term. The sentence also includes three years of supervised release and a $35,000,100 fine. In addition, the court barred Shetty from serving as a corporate officer or director without approval from the probation office. This case underscores the growing crackdown on fraud within the cryptocurrency industry, as other notable cases show this trend. For example, a court sentenced Terra founder Do Kwon to 15 years in prison in 2024, and former FTX CEO Sam Bankman-Fried received a 25-year sentence following his exchange’s collapse.