Nevin Shetty, the former CFO of e-commerce startup Fabric, was indicted by the U.S. District Court in Seattle over wire fraud charges. After Fabric informed him of his impending dismissal due to his performance, Shetty reportedly moved $35M of the company's funds into a crypto firm he owned. - He reportedly transferred the sum into HighTower Treasury to invest the funds into the decentralized finance (DeFi) sector.
- Shetty was supposedly planning to pay a 6% interest on the investments back to Fabric, with the remaining profits to be retained by HighTower.
- By mid-May of 2022, the firm's $35M investment had become worthless due to the drop in crypto prices.
- Fabric informed the FBI about the matter as soon as it learned about the missing funds, triggering an investigation.
- If convicted, Shetty could face a maximum sentence of 20 years in prison.
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