Particle.news
Download on the App Store

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

He secretly diverted company funds into a DeFi venture he ran, causing losses that the judge said cost about 60 people their jobs.

Overview

  • U.S. District Judge Tana Lin handed down the sentence in Seattle after a November 2025 jury conviction on four counts of wire fraud.
  • 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 said Nevin Shetty moved $35 million between April 1 and April 12, 2022, into accounts for his side venture HighTower Treasury and placed the funds in high-yield DeFi lending protocols.
  • The investments cratered to near zero during the May 2022 crypto downturn tied to the Terra collapse.
  • Prosecutors sought nine years, and the judge described severe harm to Fabric, including a major restructuring and roughly 60 layoffs.