A former executive who embezzled $35 million from the company to invest in DeFi failed and was sentenced to two years in prison and ordered to pay damages.

CoinFeed reported on March 7th that, according to Decrypt, Nevin Shetty, a 42-year-old man from Washington state, secretly transferred $35 million of company funds to its self-operated DeFi platform, HighTower Treasury, while serving as CFO of a private software company. The funds were invested in high-yield lending protocols, and the company's funds were almost wiped out when Terra collapsed in May 2022. The incident led to the company laying off 60 employees and nearly going bankrupt. Shetty was convicted of four counts of wire fraud and sentenced to two years in prison, ordered to pay $35 million in restitution, and will be subject to three years of supervised release after his release. He is also prohibited from holding any corporate executive position without prior approval.