Nevin Shetty, 41, was discovered responsible on 4 counts of wire fraud for secretly transferring $35 million from his former employer into high-risk crypto investments.
SEATTLE — A Mercer Island man has been convicted of wire fraud for secretly transferring $35 million from his former employer into high-risk cryptocurrency investments that in the end misplaced almost all their worth, federal prosecutors mentioned.
Nevin Shetty, 41, was discovered responsible on 4 counts of wire fraud following a nine-day trial in U.S. District Courtroom. Jurors deliberated about 10 hours earlier than reaching their verdict on Nov. 7.
Shetty, whose sentencing is scheduled for Feb. 11, 2026, faces as much as 20 years in jail on every rely.
“This defendant exploited his place of energy and belief in an try and revenue from his crime after which lied to cowl it up,” U.S. Legal professional Charles Neil Floyd mentioned in an announcement.
In keeping with courtroom data, Shetty was employed as chief monetary officer of a non-public software program firm in March 2021. The corporate was elevating capital via a number of funding rounds. In 2022, it adopted an funding coverage assertion requiring firm funds be stored solely in cash market accounts or different conservative investments to protect capital for operations and development. Paperwork mentioned Shetty helped draft the coverage.
Shetty created a facet enterprise known as HighTower Treasury round February of 2022, a “decentralized finance” firm with a deal with cryptocurrency investing.
In March 2022, Shetty was knowledgeable by his employer that he might not proceed as CFO as a consequence of efficiency considerations. Shortly after receiving that information, he secretly started transferring firm funds to his facet enterprise.
Between April 1 and April 12, 2022, Shetty transferred $35,000,100 from his employer’s account to HighTower Treasury with out the information of different executives or board members, in response to prosecutors. He then invested the cash in decentralized finance lending protocols that promised 20% curiosity returns.
As an proprietor of HighTower, Shetty stood to revenue personally. Within the first month alone, prosecutors mentioned Shetty and his HighTower enterprise accomplice earned roughly $133,000.
Nonetheless, the cryptocurrency investments rapidly declined in worth. By Could 13, 2022, the $35 million funding was value almost nothing.
After the cash was primarily gone, Shetty disclosed what had occurred to 2 fellow executives and was instantly fired. The corporate reported the embezzlement to the FBI, which launched an investigation.
“Why did he do that? Greed — to line his personal pockets,” Assistant U.S. Legal professional Philip Kopczynski informed jurors in closing arguments. “That’s what explains his mendacity, sneaking round, and telling half-truths.”
The case was prosecuted by Kopczynski and Assistant U.S. Legal professional Grace Zoller.
