Ex-CFO jailed after $35M DeFi loss and mass layoffs

Ex-CFO Nevin Shetty got two years in prison for diverting $35M to his DeFi platform, losing it in the Terra collapse, and causing 60 layoffs. He must pay restitution and faces corporate restrictions.

Nevin Shetty, former CFO of a private software company in Washington, has been sentenced to two years in prison for secretly diverting $35 million in company funds to his own DeFi platform, HighTower Treasury. Without authorization, Shetty invested the funds in high-yield DeFi protocols promising returns of 20% or more. Initially, the scheme generated $133,000 in its first month. However, the collapse of the Terra ecosystem caused the investments to lose nearly all their value. As a result, the company suffered significant financial losses and was forced to lay off 60 employees. The theft was uncovered during an internal audit, leading the company to implement stricter financial controls, such as independent audits and dual authorization for large transfers. Besides his prison sentence, Shetty must pay over $35 million in restitution and is barred from serving as a corporate officer during his supervised release.