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Former Fabric CFO Sentenced to Two Years for $35 Million Crypto Scheme

The judge said his secret DeFi bet through a personal venture devastated the startup, costing about 60 jobs.

Overview

  • A U.S. District Court in Seattle sentenced Nevin Shetty to two years in prison for wire fraud tied to the diversion of company funds.
  • The court ordered $35,000,100 in restitution, three years of supervised release, and a bar on serving as a corporate officer or director without probation approval.
  • Prosecutors had sought a nine-year term, calling the conduct a calculated scheme motivated by greed.
  • Court records say that between April 1 and April 12, 2022, Shetty moved $35,000,100 from a Chase branch into HighTower Treasury accounts he controlled, violating a conservative policy he helped write.
  • He placed the money in high-yield DeFi protocols after planning to return a small fixed payment to his employer, saw about $133,000 in early gains, then lost nearly all funds during the May 2022 Terra-driven crash before confessing and being fired.