In a shocking turn of events, a former Chief Financial Officer has been found guilty of engaging in wire fraud, utilizing company funds for an unauthorized cryptocurrency venture.
Unraveling the Fraud Scheme
Recently, the US Attorney’s Office for the Western District of Washington released details about the conviction of a former CFO found guilty of funneling $35 million from his employer into a cryptocurrency project. The individual in question had been serving as the CFO of a private software company and began his tenure in March 2021 when the firm was actively seeking investment to grow its operations.
During this fundraising phase, the company had established strict guidelines regarding capital management, specifying that all new funds should be secured in safe, low-risk investments. This was a crucial step to ensure financial stability while focusing on enhancing operational efficiency.
However, despite being part of this decision-making process, the CFO misappropriated the company’s funds by diverting $35 million to HighTower Treasury, a cryptocurrency platform he co-founded in early 2022. This illegal activity came to light amid performance-related concerns raised by the company about his role.
A statement from the Department of Justice highlighted the timeline:
After being informed in March 2022 that his position as CFO would be reconsidered due to performance issues, he transferred the funds from the company’s accounts to HighTower Treasury. These actions were conducted without any knowledge of other executives or board members.
It turned out that the funds were subsequently placed in a decentralized finance (DeFi) protocol, which promised an attractive 20% interest rate on investments. The CFO intended to return 6% to the company while keeping the remainder. Initially, this venture appeared promising, generating about $133,000 in the first month, but rapidly declined to $0 by mid-May 2022.
After admitting his actions to colleagues, he was promptly dismissed and the company escalated the matter to the FBI, leading to an extensive investigation.
Awaiting Consequences
Following a thorough jury trial, the CFO was convicted of four counts of wire fraud on November 7, 2025, after a jury deliberation that lasted ten hours. The presiding US District Judge, Tana Lin, is set to announce the sentencing on February 11, 2026, where the implications of this type of financial misconduct will be addressed.
Each count of wire fraud carries a potential maximum sentence of 20 years. However, it is critical to note that federal sentences may not be served consecutively, and the sentencing will be influenced by various considerations, such as the financial damage incurred, the individual’s role in the scheme, and any prior criminal history.
