Dylan Meissner, a former vice president of finance at Delphi Digital, has been sentenced to four years in prison after admitting to embezzling nearly $4.5 million from the cryptocurrency research firm. The sentence, delivered by Connecticut District Court Judge Michael P. Shea on December 17, also includes a requirement for Meissner to pay over $4.6 million in restitution to cover the stolen funds and an unpaid loan.
Meissner held a senior finance position at Delphi Digital from October 2021 to November 2022. Court documents from the U.S. Justice Department referred to Delphi only as “Company A,” but Meissner’s defense lawyer confirmed the identity of the firm in a sentencing memo.
The embezzlement began in January 2022 after Meissner received a 50 ETH loan from Delphi, valued at approximately $170,000 at the time. The loan was meant to help him offset personal crypto losses, but he failed to repay it. Over the following months, he orchestrated a scheme to steal approximately $4.46 million from the company, falsifying financial records to hide the missing funds.
Sentencing and Restitution
In July 2023, Meissner pleaded guilty as part of a plea deal and was released on a $100,000 bond. The four-year sentence handed down was less than the six-and-a-half to eight years prosecutors had sought. Following his prison term, Meissner will face two years of supervised release. He is required to report to prison on February 21, 2025, and has waived his right to appeal the sentence.
Prosecutors described Meissner’s actions as part of a “sustained, multi-faceted scheme” rather than a momentary lapse in judgment. They argued for a stricter sentence, citing the calculated nature of the crimes.
“This was not a drug-induced haze,” they stated, pointing out that Meissner intended to use Delphi’s funds to recover his personal crypto losses and then repay the stolen money. “It suggests that the defendant was operating rationally, if wrongfully—he intended to use company money to recoup his personal losses and make money for himself, and then give the company back what he took once the market went up.”
Defense Cites Substance Abuse Struggles
Meissner’s legal team requested a lighter sentence of 51 to 63 months, citing his struggles with substance abuse and efforts to maintain sobriety. They highlighted his cooperation with Delphi, noting he admitted his crimes and created a detailed spreadsheet documenting the financial damage he caused.
This sentencing comes amid broader legal actions in the cryptocurrency industry. Last week, a California court fined five individuals involved in IcomTech’s Bitcoin Ponzi scheme $5 million for fraud and misappropriation of funds.
The case serves as a stark reminder of the legal and financial risks associated with the cryptocurrency sector, emphasizing the importance of accountability and transparency.
