Former Delphi Digital Vice President Sentenced to Four Years for $4.5 Million Cryptocurrency Fraud

Dylan Meissner, the former vice president of finance at Delphi Digital, has been sentenced to four years in prison after confessing to embezzling nearly $4.5 million from the cryptocurrency research firm.

The sentence was issued by Connecticut District Court Judge Michael P. Shea on December 17, as stated in a press release from the Justice Department.

Meissner, who served in a senior finance position at Delphi Digital from October 2021 to November 2022, was convicted of wire fraud.

Meissner Required to Pay $4.6M in Restitution

He was also mandated to pay over $4.6 million in restitution, which includes both the misappropriated funds and an outstanding loan.

After completing his prison sentence, Meissner will undergo two years of supervised release. He is scheduled to report to prison on February 21, 2025, and has relinquished his right to appeal the sentence.

Court documents from the U.S. Justice Department did not specifically mention Delphi Digital, referring to it merely as “Company A” and a “cryptocurrency research firm.”

However, Meissner’s defense attorney identified the firm as Delphi in a memo related to the sentencing.

The embezzlement scheme commenced after Meissner obtained a 50 ETH loan from Delphi in January 2022, which was valued at approximately $170,000 at that time.

The loan was meant to assist him in avoiding losses from personal cryptocurrency investments, but he did not repay it.

In the subsequent months, Meissner misappropriated around $4.46 million from the company. To hide the theft, he falsified financial documents, altering the company’s records to obscure the missing funds.

As part of a plea agreement, Meissner acknowledged his guilt in July 2023 and was released on a $100,000 bond.

Crypto News: Dylan Meissner, former VP of finance at Delphi Digital, has been sentenced to 4 years in prison for embezzling $4.5M from the crypto research firm. A Connecticut judge has also ordered him to pay $4.6M in restitution, covering stolen funds and an unpaid loan.… pic.twitter.com/daH2zOE94Z

— Bitcoin Vista (@bitcoinvista) December 18, 2024

His sentencing was less than the six-and-a-half to eight-year prison term requested by prosecutors, who advocated for a harsher punishment of 78 to 97 months.

They emphasized the “sustained, multi-faceted scheme” Meissner employed to steal from Delphi, describing it as significantly more than a “momentary lapse in judgment.”

Meissner’s Legal Team Seeks a Reduced Sentence

In his defense, Meissner’s legal representatives sought a reduced sentence of 51 to 63 months, citing his challenges with substance abuse and his attempts to maintain sobriety.

His attorneys also pointed out that Meissner confessed his crimes to Delphi and even created a spreadsheet detailing the financial harm he caused.

However, prosecutors contended that Meissner’s actions were calculated rather than impulsive.

They noted that he informed the Probation Office he had planned to return the stolen funds, indicating he intended to use Delphi’s resources to recover his personal cryptocurrency losses.

“This was not a drug-induced haze,” prosecutors remarked, stressing that Meissner acted with intent, aiming to profit from the firm’s money and repay it once the market improved.

“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.”

Last week, a California court imposed a $5 million fine on five individuals involved in IcomTech’s fraudulent Bitcoin Ponzi scheme.

The court ruling found the defendants guilty of fraud and misappropriation of funds through a fictitious cryptocurrency trading operation.

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