A Seattle judge has sentenced Nevin Shetty, former chief financial officer of a local startup, to two years in prison. Shetty was convicted of wire fraud for secretly moving approximately $35 million in company funds to a cryptocurrency platform he controlled in 2022. He intended to use the money for high-yield DeFi lending protocols promising significant returns.
Despite initial gains, the value of the investments plummeted due to a market downturn, including the collapse of the Terra ecosystem. By May 2022, the $35 million was nearly worthless. Shetty disclosed his actions to executives after the funds were lost and was subsequently fired.
Shetty was indicted in May 2023 and found guilty on four counts of wire fraud in November 2025. He has been ordered to repay the stolen funds and will serve three years of supervised release post-sentence. This case occurred months before the collapse of FTX, leading to its former CEO Sam Bankman-Fried's conviction and 25-year sentence, for which he is currently appealing.