Software company executive embezzled $35 million in company funds…lost the entire amount in crypto asset investments
Summary
- It was reported that the CFO of a software company removed $35 million of company funds without authorization to invest in crypto assets.
- Those funds were reportedly entirely lost on a DeFi (decentralized finance) platform.
- The case is being regarded as an example that suggests the need to strengthen internal controls within companies.
The chief financial officer (CFO) of a software company was convicted on charges of withdrawing $35 million in company funds without authorization and using them for crypto asset (cryptocurrency) investments. The invested funds were reportedly all lost on a DeFi (decentralized finance) platform.
According to crypto asset-focused media Decrypt, Nevin Shetty (Nevin Shetty) diverted $35 million from the company account while serving as CFO and transferred it to his own crypto asset platform. He used the funds for DeFi investments seeking high returns but lost the entire amount.
Prosecutors argued that Shetty's actions were deliberate and premeditated, and the court found him guilty of breach of trust and fraud. Shetty is reported to face up to 20 years in prison.
The case is being seen as an example that highlights the need to strengthen internal controls, as cases of senior corporate executives embezzling funds related to crypto assets are on the rise.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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