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The former finance vice president of Delphi Digital was sentenced to four years in jail after admitting to embezzling almost $4.5 million from the crypto research firm.
Connecticut District Court Judge Michael P. Shea on Dec. 17 sentenced Dylan Meissner to 48 months in jail followed by two years supervised release and ordered him to pay back more than $4.6 million for the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mine-digital-crypto-exchange-former-ceo-charged-with-fraud" rel="null" target="null" text="null" title="null">funds he stole</a> plus a loan he hadn’t repaid, the Justice Department <a data-ct-non-breakable="null" href="https://www.justice.gov/usao-ct/pr/cryptocurrency-firm-executive-sentenced-4-years-federal-prison-stealing-446-million" rel="null" target="null" text="null" title="null">said</a>.
The Justice Department didn’t identify Meissner’s previous employer by name — referring to it in court as “Company A” and a “cryptocurrency research firm” — but he worked at Delphi Digital at the time of his crimes.
Meissner’s lawyer also repeatedly mentioned “Delphi” as the company in a sentencing memo <a data-ct-non-breakable="null" href="https://www.courtlistener.com/docket/68956444/28/united-states-v-meissner/" rel="null" target="null" text="null" title="null">filed</a> earlier this month.
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 An excerpt of Meissner’s sentencing memo notes “Delphi” as the company harmed. Source: <a data-ct-non-breakable="null" href="https://www.courtlistener.com/docket/68956444/28/united-states-v-meissner/" rel="null" target="null" text="null" title="https://www.courtlistener.com/docket/68956444/28/united-states-v-meissner/">CourtListener</a>
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As Delphi’s vice president of finance between October 2021 and November 2022, Meissner had access to the company’s crypto wallets and bank accounts.
In January 2022, Delphi gave him a 50 <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/what-is-ethereum-a-beginners-guide-to-eth-cryptocurrency" rel="null" target="null" text="null" title="null">Ether</a> (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="null" target="null" text="null" title="null">ETH</a>) loan worth about $170,000 at the time, which he said was to avoid losses in personal crypto investments he’d made.
He didn’t repay the <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/traditional-lending-vs-crypto-lending" rel="null" target="null" text="null" title="null">loan</a>, and from then until he was fired in November 2022, Meissner stole about $4.46 million from Delphi and made fake financial entries on its books to cover up <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mango-labs-sues-embezzlement-dao" rel="null" target="null" text="null" title="null">his embezzlement</a>.
As part of a plea deal, Meissner pleaded guilty to wire fraud in July and was released on a $100,000 bond. The Justice Department said he’s required to report to prison on Feb. 21, 2025, and waived his right to an appeal.
Meissner’s sentence was below the lower-end suggestion from his lawyer, who asked that he serve 51 to 63 months. In a Dec. 10 sentencing <a data-ct-non-breakable="null" href="https://www.courtlistener.com/docket/68956444/31/united-states-v-meissner/" rel="null" target="null" text="null" title="null">memo</a>, prosecutors said he should serve 78 to 97 months, or 6.5 to 8 years.
Meissner’s sentencing memo asked the judge to account for his history with substance abuse, his effort to continue maintaining his sobriety and his admission to “himself and to Delphi that he was a drug addict who had betrayed the company through his large-scale embezzlement.”
It added that he helped Delphi by making a spreadsheet of “the damage he had caused the company.”
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sec-bitcoin-etf-hacker-permission-travel-holidays" rel="null" target="null" text="null" title="null">Alleged SEC hacker allowed to travel for the holidays</a>&nbsp;
Prosecutors, however, said in their memo that Meissner’s crimes weren’t “a momentary lapse in judgment, but [a] sustained, multi-faceted scheme to steal millions of dollars from an employer that entrusted the defendant with its finances.”
They said he took the money with the intention of returning it eventually, which undermined “the suggestion that the defendant’s actions were borne of a compulsion to gamble or a drug-induced haze.”
They added: “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.”
Cointelegraph reached out to Meissner’s lawyers for comment but hadn’t received a reply by the time of writing.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/fbi-tokens-ai-crypto-wash-trades-is-it-legal/" rel="null" target="null" text="null" title="null">Legal issues surround the FBI’s creation of fake crypto tokens</a>&nbsp;

Delphi’s ex-finance VP sentenced to 4 years over $4.5M embezzlement

Cointelegraph

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