A former chief financial officer at a Washington-based technology company has been sentenced to two years in prison for transferring $35 million in company funds into personal cryptocurrency investments. Nevin Shetty, 42, made the transfer after learning of his impending dismissal, channeling the money through his side venture HighTower Treasury into various decentralized finance (DeFi) protocols. However, when the crypto market crashed in 2022, the investments collapsed, leaving the company with massive losses it could not recoup.
Risky Crypto Bet Ends in Multi-Million Dollar Losses
Despite the firm’s strict investment guidelines, Shetty diverted a significant portion of company funds to his own start-up, HighTower Treasury, in an attempt to profit from DeFi markets. He spread the money among platforms promising annual returns exceeding 20 percent—a tempting proposition amid the digital asset boom.
Initially, the gamble appeared to pay off, yielding about $133,000 in profit in the first month. But the collapse of the Terra ecosystem and subsequent market nosedive wiped out almost the entire investment. HighTower’s portfolio, valued at roughly $35 million at its peak, rapidly lost its worth, devastating any hope of recovery.
After the losses became apparent, Shetty reported the situation to his employer and was promptly dismissed. The fallout extended well beyond the immediate investment, as the swings of the crypto market put severe pressure on the company’s stability.
Layoffs and Corporate Fallout
Court documents reveal that the firm’s financial wounds threatened its very survival. In an effort to stay afloat, leadership was forced to lay off nearly 60 employees. U.S. District Judge Tana Lin underscored that the consequences for the company were “substantial and severe.”
Prosecutors contended that Shetty’s actions produced lasting damage for both the company and its workers. While the prosecution sought a nine-year prison term, the court ultimately handed down a two-year sentence.
Judge Lin emphasized that the scale of the loss brought the company to the brink of closure.
Legal Penalties and Ongoing Restrictions
In addition to his prison term, Shetty has been ordered to pay more than $35 million in restitution. He will be subject to supervised release for three years following his incarceration, and any future managerial role in a company will require court approval.
This case has become a high-profile example of the dangers associated with crypto investments in the United States. The country has also seen a spike in physical attacks and scams targeting cryptocurrency holders. According to security analyst Jameson Lopp’s public database, nearly 70 similar incidents have already been reported in 2025 alone.
Experts warn that criminals are leveraging online personal data to single out crypto investors, and that young people are being drawn into these risky ventures at an alarming rate.
