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Former CFO Nevin Shetty faces 20 years in prison for putting $35 million into DeFi and then suffering a complete failure
A notable financial scam case has been identified involving Nevin Shetty, a former Chief Financial Officer at a leading American software company. According to PANews, he is currently facing four charges of online fraud after illicitly using $35 million from the company’s budget to invest in high-risk DeFi protocols.
Nevin Shetty’s Unexpected Action When Facing Job Loss
In 2022, upon receiving notice of impending dismissal, Nevin Shetty decided to take action. He secretly transferred a huge sum from the company’s funds to bet on DeFi projects. Initially, this strategy seemed to yield positive results with a profit of $133,000, creating a glimmer of hope for recovery.
The Tragic Scenario When Terra Collapsed
However, that optimistic scenario did not last long. In May 2022, the Terra ecosystem collapsed, leading to the downfall of nearly all the assets Nevin Shetty had invested in. Almost the entire $35 million allocated to DeFi vanished, leaving him in a dire financial situation.
Inescapable Legal Consequences
After the truth was uncovered, Nevin Shetty admitted his wrongdoing. He not only lost his job but also faced court proceedings. The sentencing is expected to take place in February 2026, with penalties potentially reaching up to 20 years in prison — a strong warning about the consequences of abusing financial trust and recklessly investing in new technologies.
Nevin Shetty’s story is a classic lesson on how DeFi can become a tool for poor financial decisions, especially when driven by desperation or personal pressure.