Mercer Island man convicted of defrauding employer in $35M cryptocurrency scheme
Nevin Shetty, 41, was found guilty on four counts of wire fraud for secretly transferring $35 million from his former employer into high-risk crypto investments.
SEATTLE — A Mercer Island man has been convicted of wire fraud for secretly transferring $35 million from his former employer into high-risk cryptocurrency investments that ultimately lost nearly all their value, federal prosecutors said.
Nevin Shetty, 41, was found guilty on four counts of wire fraud following a nine-day trial in U.S. District Court. Jurors deliberated about 10 hours before reaching their verdict on Nov. 7.
Shetty, whose sentencing is scheduled for Feb. 11, 2026, faces up to 20 years in prison on each count.
“This defendant exploited his position of power and trust in an attempt to profit from his crime and then lied to cover it up,” U.S. Attorney Charles Neil Floyd said in a statement.
According to court records, Shetty was hired as chief financial officer of a private software company in March 2021. The company was raising capital through multiple funding rounds. In 2022, it adopted an investment policy statement requiring company funds be kept only in money market accounts or other conservative investments to preserve capital for operations and growth. Documents said Shetty helped draft the policy.
Shetty created a side business called HighTower Treasury around February of 2022, a “decentralized finance” company with a focus on cryptocurrency investing.
In March 2022, Shetty was informed by his employer that he could no longer continue as CFO due to performance concerns. Shortly after receiving that news, he secretly began transferring company funds to his side business.
Between April 1 and April 12, 2022, Shetty transferred $35,000,100 from his employer’s account to HighTower Treasury without the knowledge of other executives or board members, according to prosecutors. He then invested the money in decentralized finance lending protocols that promised 20% interest returns.
As an owner of HighTower, Shetty stood to profit personally. In the first month alone, prosecutors said Shetty and his HighTower business partner earned roughly $133,000.
However, the cryptocurrency investments quickly declined in value. By May 13, 2022, the $35 million investment was worth nearly nothing.
After the money was essentially gone, Shetty disclosed what had happened to two fellow executives and was immediately fired. The company reported the embezzlement to the FBI, which launched an investigation.
“Why did he do this? Greed — to line his own pockets,” Assistant U.S. Attorney Philip Kopczynski told jurors in closing arguments. “That is what explains his lying, sneaking around, and telling half-truths.”
The case was prosecuted by Kopczynski and Assistant U.S. Attorney Grace Zoller.