Former CFO indicted for diverting $35M to cryptocurrency venture

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Former CFO indicted for diverting $35M to cryptocurrency venture
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The former CFO funneled around $35 million from the start up company he managed to a cryptocurrency platform which he personally operated.

Nevin Shetty, a former Chief Financial Officer at a Seattle start-up company, wasThe indictment alleges that Shetty, 39, diverted approximately $35 million from the start-up company's coffers to a cryptocurrency platform under his personal control. Shetty reportedly established this platform, known as HighTower Treasury, in February 2022, shortly before being notified of his impending departure as CFO due to concerns regarding his performance.

During the period from April 1 to April 12, 2022, Shetty allegedly transferred a substantial amount of $35,000,100 from his employers to an account linked to HighTower, without the knowledge of any other individuals within the company. The alleged purpose behind this transaction was for HighTower to allocate the funds towards investments within the decentralized finance sector of the cryptocurrency market.

Prosecutors say that the value of Shetty's cryptocurrency investments began to decline rapidly, and by May 13, 2022, the $35 million investment had essentially become worthless. Upon discovering the embezzlement, the start-up company promptly reported the incident to the Federal Bureau of Investigation , triggering an investigation into the matter. If convicted of wire fraud, Shetty could face a maximum sentence of 20 years in prison. He is expected to be arraigned on May 25, 2023.

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