In brief
- A Washington man has been jailed for two years for diverting $35 million in company funds to a DeFi platform he operated.
- Nevin Shetty was found guilty of wire fraud last November for secretly moving the funds to HighTower Treasury.
- Following the Terra collapse, the value of the funds crashed to near zero, with the impact on Shetty’s employer causing it to lay off 60 people.
A Washington man has been sentenced to two years in prison after diverting $35 million in funds from his former employer to his own DeFi platform—and losing nearly all of it.
Nevin Shetty, 42, was found guilty of wire fraud last November for taking and misusing funds from the private software company at which he worked.
Shetty, who drafted a “conservative” company investment policy, secretly moved $35 million in company funds to his side business HighTower Treasury, after being told in April 2022 that his role as CFO would end due to performance issues. Those funds were then invested in high-yield DeFi lending protocols that promised returns of 20% or more.
Per the DOJ’s statement, Shetty planned to pay his employer a “comparatively small, fixed amount,” keeping the remainder of the returns for HighTower. Initially, the scheme paid off, earning some $133,000 in its first month for Shetty and his HighTower business partner.
The wheels came off in May 2022, following the Terra collapse and the subsequent crypto winter, with Shetty’s HighTower crypto investments plummeting in value from $35 million to near zero.
After confessing to colleagues at his employer, Shetty was fired from the company, which, according to trial judge Tana Lin, suffered “significant and severe effects” as a result of his theft, adding that his actions “almost put the company out of business.”
Shetty’s two-year prison sentence is significantly lower than the nine years requested by the prosecution, which urged for “stern punishment” to reflect the “web of lies” and impact on the company, which was forced to lay off 60 people in order to adapt to the “massive loss” caused by his fraud.
Shetty was ordered to pay $35,000,100 and will be placed on supervised release for three years after prison. Judge Lin also imposed a special condition blocking him from serving as an officer or director of a company without prior permission from the probation office.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Kelp DAO Hack Attributed to Lazarus Group; eth.limo Domain Hijacked via Social Engineering
LayerZero reported that the Kelp DAO exploit, attributed to North Korea's Lazarus Group, led to a loss of $292 million in rsETH tokens due to vulnerabilities in its decentralized verifier network. Additionally, eth.limo faced a domain hijacking from a social engineering attack, but DNSSEC mitigated severe damage.
GateNews2h ago
LayerZero responds to Kelp DAO’s 292 million incident: it indicates that Kelp set up a custom 1-of-1 DVN configuration, and the attacker was North Korea’s Lazarus.
LayerZero issued a statement regarding the $292 million hack suffered by Kelp DAO, accusing Kelp’s self-selected 1-of-1 DVN configuration of making the incident possible. The attacker was the North Korean Lazarus Group. LayerZero emphasized that this incident stems from configuration choices and that it will no longer support this kind of vulnerable setup. In addition, responsibility is still disputed, and no compensation plan has been provided.
ChainNewsAbmedia7h ago
Charles Schwab Explores Prediction Markets Tied to Financial Events Amid Regulatory Scrutiny
Charles Schwab is considering introducing prediction markets for financial events amid growing Wall Street interest, while maintaining a focus on wealth management. Regulatory scrutiny is increasing, especially regarding sports and entertainment wagers, highlighted by recent legislation and concerns over insider trading and market manipulation.
GateNews7h ago
Warren Questions SEC Chair as 2025 Enforcement Actions Fall to Decade Low
Senator Elizabeth Warren accused SEC Chair Paul Atkins of misleading Congress over a decline in enforcement actions, which hit a decade low in fiscal 2025. Warren sought clarification on the regulatory shift, while Atkins defended the changes as a strategic realignment of priorities.
GateNews7h ago
Latam Insights: Brazil Seeks Online Gambling Ban, Venezuela's National Stablecoin Proposal
Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this edition, a draft to repeal all online gambling has been introduced in Brazil, a proposal to include stablecoins to help curb currency restrictions rises in Venezuela, and Latam
Coinpedia13h ago
A judge ruled that the JENNER meme coin issued by socialite Jenners from the Kardashian family is not a security, dismissing the lawsuit.
The U.S. District Court for the Central District of California ruled that the $JENNER meme coin issued by socialite Jenna, of the Kardashian family, does not meet the definition of a security, dismissing investors’ lawsuit. The judge said the plaintiffs failed to prove the features of a common enterprise and can bring other claims in state court.
ChainNewsAbmedia22h ago
