Nevin Shetty, former chief financial officer of a prominent corporation, has been convicted for misappropriating $35 million in company funds through unauthorized cryptocurrency investments. Court documents reveal Shetty channeled the substantial sum into decentralized finance lending protocols during 2022, initially generating promising returns before market conditions deteriorated dramatically.
The illicit investment scheme began unraveling following the catastrophic collapse of the Terra ecosystem, which triggered widespread volatility across digital asset markets. The subsequent market downturn erased Shetty’s temporary gains and ultimately resulted in the complete loss of the misappropriated corporate capital.
Legal proceedings confirmed Shetty acted without corporate authorization or disclosure, violating his fiduciary responsibilities as CFO. The conviction underscores growing concerns about corporate governance in the evolving digital asset landscape and highlights the substantial risks associated with unauthorized cryptocurrency speculation using institutional funds.
Financial regulators have emphasized the case serves as a cautionary tale for corporate officers regarding the proper management of company assets and the severe legal consequences of breaching financial oversight duties. The sentencing phase will determine the full extent of Shetty’s penalties for his financial misconduct.
