Seattle startup's ex-CFO accused of diverting $35M, losing it in crypto crash

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Seattle startup’s ex-CFO accused of diverting $35M, losing it in crypto crash

May 18, 2023 at 10:44 am
By GENE JOHNSON
The Associated Press

SEATTLE (AP) — The former chief financial officer of a Seattle-based startup took $35 million of his employer’s money without permission and lost it by investing in cryptocurrency before the crypto market crashed last year, according to a federal indictment returned by a grand jury Wednesday.

Nevin Shetty, 39, was hired in March 2021 as CFO of a company called fabric, which makes software platforms for retail commerce. ... About a year later, after the company informed him it was letting him go over job performance concerns, he secretly took the money and transferred it to HighTower Treasury, a crypto platform he controlled as a side business, the indictment said.

His idea was to pay the company 6% interest while retaining profits above that, but soon the $35 million investment was practically worthless, the U.S. Attorney’s Office in Seattle said in a news release. ... The indictment in U.S. District Court charged Shetty with four counts of wire fraud. He is scheduled to be arraigned May 25.

Shetty’s attorney, Cooper Offenbecher, said in an emailed statement that he and his client had been in regular contact with prosecutors and disagreed with the decision to bring an indictment.

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[bucolic_frolic]

1. If I got my hands on that type of capital, by hook or by crook, I wouldn't wind up with ZERO