In Washington state of the United States, Nevin Shetty, the former chief financial officer of a technology company, was sentenced to two years in prison for transferring $35 million from his company account to his personal cryptocurrency investment. After learning that he would be laid off, Shetty, 42, invested these funds in decentralized finance (DeFi) protocols through his side venture, HighTower Treasury. However, after the rapid depreciation of the crypto market in 2022, the investment failed and the company suffered serious losses.
Crypto Investment and Huge Loss
Despite the investment policy prepared at the private software company where he served as a senior manager, Shetty directed a significant portion of the company’s funds to his initiative called HighTower Treasury. The deposited amount was transferred to decentralized finance protocols and distributed to platforms promising annual returns of over 20 percent.
Although at the beginning of the transaction, the investment brought a profit of around 133 thousand dollars in the first month, the collapse of the Terra ecosystem and the subsequent sharp decline in the crypto market reduced the entire investment to almost zero. HighTower’s portfolio value quickly eroded from approximately $35 million.
Following the losses, Shetty reported the situation to the company and was soon dismissed. The effects of the crypto market volatility on the company were much broader.
Effects on the Company and Employees
According to court documents, the financial loss suffered by the company jeopardized its continued operations. The company had to lay off approximately 60 employees in order to survive during this period. U.S. District Judge Tana Lin noted that the incident had “significant and grave” consequences for the company.
The prosecution argued that Shetty’s actions caused permanent harm to the employees and the company. Although a nine-year prison sentence was requested for Shetty after the incident in question, the court ultimately sentenced him to two years in prison.
U.S. District Judge Tana Lin said the loss nearly brought the company to the brink of closure.
Imprisonment and Future Legal Restrictions
Shetty was sentenced to two years in prison and ordered to pay more than $35 million in damages. He will also be placed on probation for three years following his sentence. According to the judicial decision, Shetty’s ability to take part in the management of any company from now on will be subject to court approval.
The incident stood out as an important example of the risks of crypto investments in the United States. Recently, there has been an increase in various physical attacks and fraud cases targeting cryptocurrency holders across the country. Nearly 70 similar incidents have been reported in 2025 alone, according to security researcher Jameson Lopp’s public database.
Experts state that criminals target crypto investors by taking advantage of personal data online and involve young people in these businesses.
