“The loss had significant and severe effects on the company,” U.S. District Judge Tana Lin said during the sentencing. “Your actions threw into complete turmoil the lives of those 60 people (who were laid off) … You almost put the company out of business … You were playing with money that wasn’t yours.”
Despite the defense’s argument that Shetty was merely making an “unauthorized investment” rather than committing fraud, the jury found that his “web of lies”—including hiding the transfers from the board and other executives—constituted criminal activity.
FAQ What was Nevin Shetty convicted of? He was sentenced to two years in prison for wire fraud after misappropriating $35 million from his employer. How did Shetty attempt to profit from the company’s funds? He funneled the money into a personal cryptocurrency yield farming scheme via a side business called HighTower Treasury. What was the outcome of Shetty’s investment strategy? The strategy collapsed when the TerraUSD stablecoin de-pegged, leading to almost total loss of the invested funds. What impact did Shetty’s actions have on the company? Fabric was forced to lay off 60 employees due to the financial turmoil caused by Shetty’s fraudulent activities.
