When Crypto Dreams Turn Into $35M Nightmares: The Nevin Shetty Case Explained

A cautionary tale has emerged from the tech world, exposing how even high-ranking executives can make catastrophic financial decisions. Nevin Shetty, the former CFO of a private software company, has been found guilty of orchestrating a massive fraud scheme that drained $35 million in company funds into a cryptocurrency venture.

How a CFO’s Side Project Became a Felony

The sequence of events reads like a textbook fraud case. In March 2021, Nevin Shetty took his position at the software firm during an active fundraising period. The company had adopted a clear investment mandate: newly raised capital should only be placed in conservative vehicles like money market accounts. Shetty himself had participated in drafting this policy.

Yet by February 2022, something shifted. Nevin Shetty co-founded HighTower Treasury, a cryptocurrency investment platform, with a partner. Within weeks, he redirected $35 million of company funds into this new venture—a direct violation of the investment policy he had helped establish.

The DeFi Gamble That Failed

The mechanics of the scheme reveal both ambition and recklessness. Shetty funneled the $35 million into a high-yield DeFi lending protocol offering 20% interest returns. The arrangement called for the company to receive 6% while HighTower Treasury captured the remaining 14% in profits.

Initial results seemed promising. The first month generated $133,000, creating an illusion of viability. However, this success proved fleeting. By May 13, 2022—just months into the arrangement—the investment had completely collapsed to zero. The promised returns evaporated, along with the company’s capital.

Discovery and Consequences

Once Nevin Shetty confessed to colleagues about the financial disaster, the company immediately escalated the matter to law enforcement. The FBI launched an investigation, ultimately building a case that led to wire fraud charges.

On November 7, 2025, after a nine-day trial and ten hours of jury deliberation, Nevin Shetty was convicted on four counts of wire fraud. The verdict set the stage for sentencing, which US District Judge Tana Lin has scheduled for February 11, 2026. While each wire fraud count theoretically carries a maximum 20-year sentence, federal judges typically apply guidelines that consider loss magnitude, degree of culpability, and criminal history—making the actual sentence likely to be more moderate than the theoretical maximum.

What This Means for Crypto and Corporate Governance

The Nevin Shetty case underscores a critical vulnerability: even established executives can be seduced by cryptocurrency’s promise of outsized returns, especially when they hold fiduciary responsibility. The case also highlights how DeFi protocols—despite their innovative appeal—can pose significant risks to institutional capital when stakes are highest and due diligence is lowest.