CFO Convicted for Losing $35 Million of Company Money in Crypto Side Hustle

Overview

Nevin Shetty, a Chief Financial Officer, has been convicted for misappropriating a significant amount of company funds, which he then invested in decentralized finance (DeFi) lending protocols. His actions, which occurred in 2022, were initially profitable until the collapse of Terra and the broader crypto market.

Details of the Incident

Nevin Shetty engaged in a side hustle that involved the theft of company funds, which he subsequently channeled into DeFi lending protocols. This decision appeared to yield substantial returns at first. However, the situation took a downturn when the Terra platform and the larger cryptocurrency market experienced a significant collapse, affecting Shetty’s profitable ventures.

Impact on the crypto market

• The incident highlights the risks associated with DeFi lending protocols.
• The collapse of Terra and the broader market has significant implications for investors and financial professionals.
• Misappropriation of funds in the crypto space raises concerns about regulatory oversight and the need for stricter compliance measures.
• The case may influence public perception of cryptocurrencies and their associated risks.
• It underscores the potential volatility and unpredictability inherent in cryptocurrency investments.

Updated: 11/14/2025, 4:30:10 PM