According to court filings, the company, including Shetty, drafted an investment policy that called for its startup funding to be kept in money market instruments and other conservative holdings, in order to preserve capital to grow its business and finance its daily liquidity needs. 

Yet, in early 2022, Shetty directed US$35 million of the company’s money to HighTower Treasury — which, in April 2022, used the money to invest in decentralized finance lending protocols that promised returns of at least 20%. 

Initially, the investment was successful, but by mid-May 2022, the value of the investments had nearly dropped to zero, as a result of the crash of the stablecoin TerraUSD, and the crypto asset TerraLuna. 

After…