A Seattle-based startup, Fabric, has accused its former CFO of losing the firm’s money in crypto during the market crash of May 2022.
Nevin Shetty, 39, was hired in March 2021 as CFO of a company called Fabric, which makes software platforms for retail commerce.
Tech Startup Fabric Dragged CFO into Court Battle
The casualties of the bear market in 2022 are indeed immeasurable. Individuals and firms’ greed and poor risk management cost them a great deal of money.
According to MoneyControl, Fabric’s former Chief Financial Officer (CFO), Nevin Shetty, allegedly took $35 million from the firm’s capital.
He then used the money for his crypto startup, HighTower Treasury, and lost it in May 2022’s market crash, triggered by the TerraLuna collapse.
Shetty started HighTower Treasury as a side business in February 2022. Not many details are available about Shetty’s startup online.
Allegedly, Shetty siphoned off the funds after being fired from Fabric for poor performance. The former CFO pleaded not guilty to four charges of fraud.
Fabric said in a statement:
“Since May 2022, Fabric has been cooperating with law enforcement in the investigation of the company’s former CFO Nevin Shetty’s conduct in the misuse of $35 million of fabric funds.”
According to Crunchbase, Fabric offers to build eCommerce platforms for its clients. Through four rounds, the company has raised funding of $293.5 million, and the latest funding was in Feb 2022.
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