Mercer Island CFO Nevin Shetty Sentenced to Two Years for $35 Million Crypto Wire Fraud Theft
By Staff Reporter | March 5, 2026
SEATTLE — A Mercer Island man and former chief financial officer of a Seattle-area tech startup was sentenced Thursday to two years in federal prison for orchestrating a wire fraud scheme that siphoned $35 million from his employer to fund risky cryptocurrency investments.
Guilty Verdict After High-Stakes Trial
Nevin Shetty, 42, was convicted on November 7, 2025, following a nine-day jury trial in U.S. District Court in Seattle. The jury deliberated for nearly 10 hours before finding him guilty on four counts of wire fraud related to unauthorized transfers totaling $35,100,100.
U.S. District Judge Tana Lin handed down the sentence during a hearing on March 5, 2026, far below the nine years prosecutors had sought but stern enough to reflect the scheme’s devastating impact. “The loss had significant and severe effects on the company,” Judge Lin stated, noting that Shetty’s actions led to the loss of 60 jobs and nearly bankrupted Fabric, the retail software firm where he served as CFO.
The Scheme Unraveled
Prosecutors detailed how Shetty, in early 2022, secretly diverted company funds intended for low-risk investments into his own cryptocurrency venture, HighTower Treasury. Despite helping craft Fabric’s policy restricting investments to conservative accounts, Shetty moved $15.1 million, $14.5 million, $5.4 million, and $100 in April 2022 without authorization.
Shetty planned to pocket the difference between a 6% interest payment to Fabric and the 20% returns promised by high-yield decentralized finance (DeFi) platforms. Initial profits were promising—about $133,000 in the first month—but by May 2022, the crypto market crashed, wiping out nearly the entire $35 million.
“Mr. Shetty brazenly schemed to line his own pockets with his employer’s money. Through years of pretrial litigation and then at trial, he steadfastly deflected blame and even went so far as to claim that his fraud was somehow meant to help his former company.”
— First Assistant U.S. Attorney Neil Floyd
Greed and Deception at the Core
Assistant U.S. Attorney Philip Kopczynski described the crime as “a calculated scheme motivated by greed and meticulously carried out over many months.” In closing arguments, he emphasized Shetty’s lies, sneaking, and half-truths as hallmarks of the fraud.
FBI Assistant Special Agent in Charge Jonathan Dean highlighted Shetty’s abuse of trust: “As the company’s CFO, Mr. Shetty was not only part of the investment planning but also had the access and trust to move the money.” The investigation, led by the FBI, culminated in Shetty’s indictment in May 2023 after he pleaded not guilty to embezzlement charges.
Sentence and Restitution
In addition to the two-year prison term, Shetty must pay full restitution of $35,000,100 and serve three years of supervised release. Judge Lin imposed a special condition barring him from serving as an officer or director of any company without probation office approval.
The U.S. Attorney’s Office for the Western District of Washington, prosecuting via Kopczynski and Grace Zoller, pursued the case amid a broader context of cryptocurrency-related crimes. While Shetty’s sentence is lighter than some recent high-profile crypto fraud cases—like 20-year terms for Ponzi schemers Ramil Ventura Palafox ($201 million Bitcoin scam) and fugitive Daren Li ($73 million laundering)—it underscores judicial focus on white-collar accountability.
Key Facts of the Case
- Defendant: Nevin Shetty, 42, Mercer Island, WA
- Charges: Four counts of wire fraud
- Amount Stolen: $35,100,100
- Sentence: 2 years prison, 3 years supervised release, full restitution
- Trial: November 2025, guilty after 9 days
- Judge: Tana Lin, U.S. District Court, Seattle
- Victim Impact: 60 jobs lost, company nearly bankrupt
Wider Implications for Crypto and Corporate Trust
Shetty’s downfall mirrors a wave of cryptocurrency frauds exploiting the 2021-2022 bull market’s hype. His scheme echoes larger operations, such as Palafox’s Praetorian Group, which promised impossible 0.5-3% daily Bitcoin returns and collapsed in 2021, or Li’s international laundering ring using scam centers in Cambodia.
For tech startups like Fabric, the case serves as a cautionary tale about internal controls and executive oversight. Fabric survived the theft but at great cost, highlighting vulnerabilities in fast-growing firms handling large cash reserves.
Shetty remains on bond until reporting to prison. The Justice Department continues to prioritize crypto-related financial crimes, with officials vowing aggressive pursuit of perpetrators.
This story will be updated as new developments emerge.