Former CFO Sentenced to Two Years for Stealing $35 Million to Invest in DeFi News

According to the U.S. Attorney's Office for the Western District of Washington, Nevin Shetty, former CFO of Fabric, was sentenced to two years in prison on November 7, 2025, after a nine-day jury trial found him guilty of four counts of wire fraud. Investigations revealed that Shetty, in less than a month, unilaterally transferred approximately $35 million of company funds into high-risk crypto assets, violating the company's financial policy requiring funds to be deposited in conservative accounts guaranteed by the Federal Deposit Insurance Corporation (FDIC).

Jonathan Dean, Acting Special Agent in Charge of the FBI Seattle Field Office, pointed out that Shetty knowingly invested funds intended for low-risk investments into the highly volatile cryptocurrency sector, ultimately resulting in the loss of the majority of the funds. The key to this case lies not in the market risk itself, but in the deceptive behavior of deliberately circumventing internal controls and concealing the flow of funds.

The case exposes the vulnerabilities in corporate fund management within the decentralized finance (DeFi News) environment. Experts point out that strengthening financial approval processes, implementing segregation of duties, deploying real-time fund monitoring mechanisms, and establishing independent reconciliation systems are core measures to prevent similar incidents. Especially in the DeFi News ecosystem, the anonymity of transactions and the complexity of the blockchain exacerbate the difficulty of internal control, and companies must establish a more transparent and auditable cash flow management system. Currently, the judgment has taken effect, and there is no further public information on whether asset recovery or civil litigation will be involved.