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Crypto is Europe’s answer to Revolut’s fintech dominance

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Nikc Denisenko

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

Revolut’s fintech expansion across Europe and globally is severely constraining the playing field for European fintech founders. Attempting to build a European-scale fintech — which means competing directly with Revolut — has become extremely challenging, both from a product and marketing perspective.

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Summary

  • Revolut closed the fintech door — crypto opens a new one: Competing head-on with a 65M-user super-app is a losing game, but Revolut’s relative neglect of crypto creates a rare, defensible opening.
  • MiCA turned crypto from a risk into a credential: Regulatory clarity doesn’t just unlock Europe — it boosts global trust, capital access, and turns licenses into real balance-sheet value.
  • Europe is perfectly priced for crypto scale: Cheaper talent, growing stablecoin demand, and returning VC capital make crypto-finance Europe’s best shot at building the next pan-regional champion.

By September 2025, Revolut reached 65 million customers worldwide, with 12 million in the UK alone. The company has also announced a firm timeline for serving 100 million customers, aiming to hit this milestone by mid-2027. As a result, the window of opportunity for European fintech development is rapidly narrowing. Entrepreneurs are left with only two viable options: either build a super-niche project, both in terms of product and geography — think local payment services — or exploit Revolut’s main blind spot. In their pursuit of banking licenses and regulatory relationships, they haven’t been developing crypto services with sufficient intensity.

The latter model offers several compelling advantages. Due to certain characteristics of the European startup scene, a crypto-finance project has excellent chances for global expansion, or at a minimum, pan-European growth.

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Regulation

The rollout of Markets in Crypto-Assets Regulation has given crypto projects a major boost — not because it specifically permitted or prohibited anything, but simply because it established clear, understandable frameworks for what a project must comply with to stay compliant in Europe.

There’s an unusual side effect to this regulation: MiCA enhances trust in crypto projects beyond Europe’s borders. For example, in Latin American markets, it creates an extremely positive attitude from regulators toward projects, so it becomes a notable green flag.

The workforce and economy

Compared to the US, hiring employees in Europe is significantly cheaper. Hiring one engineer in the US is equivalent to hiring two or three in Europe. It’s worth noting that in Europe, you can recruit the same developers or product managers from Revolut itself, which definitely makes sense in the context of expansion.

Cryptocurrency turnover is actively growing in Europe. Even our own statistics confirm that users are interested in receiving stablecoins to their accounts and using them as a means of payment.

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Funding

While fintech attracted less and less money in recent years, the situation is now changing.

“If 2024 was defined by scarcity, 2025 was defined by bifurcation. The recovery in fundraising has been robust, with year-to-date figures reaching approximately €6.3 billion by September, surpassing 70% of 2024’s total.” 

Part of this money is flowing into crypto, as the sector becomes institutionalized through MiCA. A license significantly capitalizes a company, transforming it in investors’ eyes from an unproven concept into a clearly understood fintech company.

“With MiCA fully live, we expect 2026 to be the year of Stablecoin Rails. Major European banks are already piloting Euro-denominated stablecoins. The ‘wild west’ of crypto is over; the institutionalization of digital assets is here, and it will likely become the standard for cross-border B2B payments.”

What could be improved?

Despite being a major benefit, MiCa still hasn’t fully solved compliance. Current legislation and regulators still stumble over crypto-specific issues when it comes to how businesses earn and spend money in crypto form. Moreover, since we’re dealing with an extremely young fintech instrument, tax incentives could facilitate its development and growth.

So if you’re feeling the pressure from Revolut on your European fintech business, we strongly advise taking a serious look at the crypto-finance market. Europe provides numerous benefits to fintech businesses that they can leverage for global expansion.

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Nikc Denisenko

Nikc Denisenko

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Nikolay Denisenko is the co-founder and CTO of Brighty, a neobanking app. Nick is a strong fintech leader with a background in finance, software development, and net banking. He is a Revolut employee #20, a former Lead Backend Engineer at the neobank, where he contributed to its most profitable division, Revolut Business. Nick has over 10 years of experience in applied mathematics, business process management, and app development. He’s an expert in building and deploying crypto finance products across Europe, stablecoins, crypto remittance, regulation, and also neobanking infrastructure.

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Crypto World

Ex-CFO Sentenced to 2 Years for Diverting $35M to Crypto Venture

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Crypto Breaking News

A Seattle judge sentenced Nevin Shetty, the former chief financial officer of a local startup, to two years in prison after a jury found him guilty of wire fraud tied to a covert crypto venture. Prosecutors say Shetty secretly moved around $35 million of company funds to a cryptocurrency platform he controlled as a side business, channeling the money into high-yield DeFi lending protocols in 2022. The transfers went undetected by executives and the board until a market downturn exposed the scheme. Indicted in May 2023 and convicted on four counts in November 2025, Shetty was ordered to repay the stolen funds and will face three years of supervised release after serving his sentence. The case unfolds amid a wider crypto winter and the Terra ecosystem crash in 2022, which underscored the sector’s volatility and governance risks.

Key takeaways

  • The CFO allegedly diverted approximately $35 million from a Seattle startup to a crypto platform he controlled as a side business in 2022, moving funds to HighTower Treasury before a market downturn.
  • Initial returns appeared promising, with about $133,000 earned in the first month, but those gains were short-lived as the Terra-related downturn and broader market conditions reversed the position, leading to a near-total loss by May 13, 2022.
  • The misappropriation remained hidden from the board and executives until the scheme’s exposure during market stress, after which Shetty was terminated from the company.
  • Shetty was indicted in May 2023 and later found guilty on four counts following a nine-day jury trial in November 2025, marking a high-profile enforcement action in crypto-related corporate fraud.
  • The sentence requires repayment of the stolen funds and imposes three years of supervised release in addition to the two-year prison term, highlighting consequences for fraud in crypto-enabled ventures.
  • Contextual factors include the Terra ecosystem collapse in 2022 and the broader regulatory and enforcement environment surrounding crypto-related misconduct and corporate governance.

Market context: The case arrived amid heightened regulatory scrutiny of crypto-related fund movements and DeFi activity, with investors and policymakers watching closely how startups manage corporate assets in a volatile market. The Terra meltdown in 2022 contributed to a period of risk-off sentiment, while high-profile incidents such as the FTX collapse underscored the need for stronger governance, disclosure, and accountability when crypto instruments intersect with corporate funds.

Why it matters

The court outcome reinforces the fundamental principle that corporate funds, even when they move through crypto channels, remain subject to fiduciary duties and return obligations. For startups, the Shetty case underscores the imperative of robust internal controls, independent oversight, and clear separation between business operations and personal crypto ventures. When executives borrow or divert company capital into volatile DeFi strategies, the risk is not only financial losses but potential legal exposure for fraud and embezzlement. The decision serves as a cautionary milestone for small firms navigating the frontier between traditional corporate finance and rapidly evolving crypto instruments.

Beyond the specific individuals involved, the episode sheds light on governance gaps in early-stage tech firms that experimentally engaged crypto funding or DeFi strategies. While diversification and alternative funding channels can offer value, misalignment between management incentives and shareholder interests can lead to scenarios where value is eroded swiftly as markets turn. The Terra-related downturn of 2022, which contributed to the decline in crypto asset valuations, framed a period in which the line between investment strategy and personal venture became dangerously blurred for some executives.

From a policy perspective, the case accentuates the ongoing need for clear reporting requirements, enhanced internal audit capabilities, and accountability mechanisms when corporate leaders pursue crypto opportunities with corporate money. It also highlights the legal framework surrounding wire fraud prosecutions in cases where crypto assets and DeFi activities are used to enrich private interests at the expense of a company and its stakeholders.

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For investors and prosecutors alike, the story underlines a broader truth about the crypto era: enthusiasm for new financial rails must be matched by stringent governance, transparent disclosures, and rigorous risk management to protect both enterprises and their communities. The legal resolution in this instance may influence how similar cases are pursued, particularly where cross-currents of corporate finance, DeFi yield farming, and market volatility intersect.

Video coverage and trial glimpses are available here: YouTube video.

Additional context around related cases and the evolving enforcement landscape can be found in prior reporting on the matter, including official statements and analyses tied to the indictment and subsequent verdict.

Note: The developments sit alongside broader industry events, such as the FTX collapse and ongoing appellate proceedings related to that case, which illustrate the persistent risk environment in crypto markets and the judiciary’s role in resolving disputes that straddle traditional finance and decentralized finance.

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What to watch next

  • Post-sentencing restitution: monitoring how the court enforces repayment of the $35 million or facilitates recovery from related assets.
  • Appeals and potential changes in the case record: any appellate filings or rulings that could modify the outcome or sentence.
  • Regulatory and governance reforms at startup and corporate venture levels to prevent similar misappropriations.
  • Impact on HighTower Treasury and any related platforms as new compliance and risk controls are evaluated.

Sources & verification

  • Department of Justice press release: Former CFO sentenced to two years in prison for $35 million theft from a Seattle tech firm. https://www.justice.gov/usao-wdwa/pr/former-cfo-sentenced-two-years-prison-35-million-theft-start-tech-firm
  • DOJ press release: Indictment for wire fraud related to diverted funds to a cryptocurrency venture (May 2023). https://cointelegraph.com/news/former-cfo-indicted-for-diverting-35m-to-cryptocurrency-venture
  • Official court and docket coverage referenced in contemporaneous reporting and subsequent verdict details. https://cointelegraph.com/news/ftx-sam-bankman-fried-returns-court-appeal

Gavel falls on former CFO who siphoned funds into DeFi bets

A Seattle startup’s former chief financial officer, Nevin Shetty, faced a judicial reckoning after prosecutors alleged a calculated scheme to divert company funds into a cryptocurrency venture that operated on the side. In 2022, according to the Department of Justice, Shetty covertly redirected roughly $35 million from the startup’s coffers to a crypto platform he controlled, channeling the money into DeFi lending protocols touted as high-yield investments. The funds were placed on HighTower Treasury, a platform described in court filings as a vehicle for his personal crypto ambitions rather than a legitimate corporate treasury tool. The maneuver proceeded without board or executive oversight, and the board only became aware of the transfer when market volatility exposed the hidden accounts.

Initial performance figures painted a misleading picture. The government noted that Shetty supposedly earned about $133,000 in the first month from these crypto wagers, a figure that many investors would consider a disproportionate return relative to risk. Yet the 2022 market environment—framed in part by a downturn in Terra-linked assets—quickly eroded the value of the crypto positions. By mid-May 2022, authorities said, the investments had collapsed toward zero, erasing the apparent early gains and triggering questions about the source and stewardship of the funds.

According to DOJ filings, Shetty did not disclose the transfers to the startup’s leadership or its board, effectively isolating the activity from proper governance channels. After the initial losses became evident, he disclosed the situation to two other executives and was subsequently fired from his role. The subsequent legal process unfolded over years, culminating in a nine-day jury trial that ended in November 2025 with a four-count conviction on wire fraud charges. The court ordered Shetty to repay the $35 million and imposed three years of supervised release beyond the two-year prison sentence.

The case sits within a broader arc of crypto-focused enforcement that has defined much of the industry’s recent history. It occurred in the wake of the Terra ecosystem’s dramatic downturn in 2022, a sequence of events that rattled investor confidence and intensified scrutiny of how crypto investments intersect with corporate capital. The trial and its outcome also align with ongoing enforcement actions that accompanied the FTX collapse, a watershed event that reshaped public and regulatory expectations for crypto exchanges, corporate risk disclosures, and the accountability of executives who oversee digital asset ventures.

For readers tracking the legal and regulatory environment around crypto, the Shetty case underscores a persistent risk: when corporate resources are funneled into personal crypto ventures, the consequences extend beyond financial losses, potentially triggering criminal charges, restitution requirements, and long-term reputational damage. It serves as a reminder that governance frameworks, internal controls, and transparent reporting remain essential as startups navigate an industry characterized by rapid innovation and heightened volatility.

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Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Strike Receives BitLicense, Money Transmitter Approval in New York

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Strike Receives BitLicense, Money Transmitter Approval in New York

Payments company Strike received a virtual currency license and a money transmitter license (MTL) from the New York State Department of Financial Services (NYDFS), allowing the company to offer its Bitcoin services to residents and businesses in New York.

Granted in February, the approvals authorize Zap Solutions, Inc., which does business as Strike, to operate under New York’s digital asset regulatory framework, the company said in a Thursday release.

New York residents can now use Strike to buy and sell Bitcoin (BTC), set recurring or price-targeted purchases and convert direct-deposited paychecks into Bitcoin. The platform also allows users to pay bills from Bitcoin balances and withdraw funds to self-custody wallets.

“Receiving our BitLicense is a defining milestone for Strike,” founder and CEO Jack Mallers said in a statement, adding that the approval allows the company to expand its Bitcoin-based financial services in a major financial market.

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Zap Solutions, Inc appears on the regulated entities list. Source: NYDFS

A BitLicense allows companies to conduct digital currency business with New York residents, but does not by itself authorize nationwide operations.

Companies looking to operate across the US must typically obtain MTLs in other states as well.

Related: MoonPay to operate in all 50 US states after NY BitLicense approval

The framework requires companies to maintain capital reserves, implement Anti-Money Laundering (AML) controls and undergo regular regulatory examinations.

NY approvals remain a key step for US crypto companies

The approvals are another step in Strike’s US expansion, with New York’s stringent licensing framework often serving as a benchmark for crypto companies seeking regulated market access.

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Others holding BitLicenses in New York include MoonPay, Coinbase, eToro, Robinhood and Circle, according to NYDFS records.

New York regulators have also taken enforcement action against license holders. In 2024, Genesis Global Trading agreed to surrender its BitLicense and pay an $8 million penalty to the regulator after investigators found failures in its AML and cybersecurity programs.

In 2025, Adrienne Harris, former superintendent of the New York State Department of Financial Services, said the state has an “outsized role to play” in the crypto ecosystem and that lawmakers frequently consult the regulator when drafting digital asset legislation.

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