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Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Former Fabric CFO Nevin Shetty was convicted of four counts of wire fraud in November 2025 after moving about $35 million in company funds to a cryptocurrency platform he controlled, according to the U.S. Attorney’s Office for the Western District of Washington. In 2026, the office announced that he was sentenced to two years in prison. The case centered on the transfer of employer funds and Fabric’s stated investment policy—not simply on the fact that the money went to crypto.
What happened to the $35 million?
The U.S. Attorney’s Office for the Western District of Washington said Shetty moved approximately $35 million in Fabric funds to a cryptocurrency platform he controlled as a side business. The figure is DOJ’s description of the funds involved; the cited announcement does not establish it as a final loss, a restitution award, or the amount permanently unrecovered.
Fabric was a Seattle e-commerce startup. DOJ said its investment policy called for cash to be held in money market accounts or other conservative investments, and that Shetty had helped draft and circulate that policy. The alleged divergence between that policy and the transfer was central to the government’s account of the case. DOJ’s conviction announcement
What was Shetty convicted of?
A federal jury found Shetty guilty on four counts of wire fraud, DOJ announced on November 7, 2025. The conviction followed an earlier charging announcement, which described allegations rather than a finding of guilt. The 2023 indictment announcement should therefore be read as a separate procedural stage, not as the date of conviction.
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In 2026, DOJ announced Shetty’s sentence: two years in prison. The sentencing announcement reports the prison term; the sources cited here do not establish an appeal’s status.
Why the case matters beyond crypto
The destination of the money was a crypto platform, but the case is also about authority over company funds, compliance with an investment policy, and oversight of large transfers. A company’s written policy can set boundaries, but its practical effect depends on how access, approvals, and monitoring work day to day. The DOJ account does not evaluate Fabric’s controls or establish which particular safeguard would have prevented the conduct.
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Questions companies can ask about treasury controls
The case offers a reason to examine treasury processes without assuming that one tool or procedure would guarantee prevention. Relevant questions include:
- Who is authorized to initiate a treasury transfer, and who independently approves it?
- Are bank permissions and internal policies reviewed when an executive’s role or employment changes?
- How frequently are transfers reconciled against bank records and approved transactions, and who reviews the reconciliation?
- What treasury activity is reported to the board, and how are unusual or out-of-policy transactions escalated?
These are control questions, not findings about what Fabric did or did not have in place. GeekWire also covered the case in its regional technology-business reporting: GeekWire’s conviction coverage.
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