Key Takeaways
- Prosecutors dubbed the embezzlement as a deliberate effort rather than an impulsive action.
- Meissner’s legal team cited a history of substance abuse and highlighted his acknowledgement of wrongdoing
Dylan Meissner, the former vice president of finance at the crypto research firm Delphi Digital, has been sentenced to four years in prison for embezzling approximately $4.5 million from the company. The sentence, issued by Judge Michael P. Shea of the Connecticut District Court on December 17, includes an additional order for Meissner to pay over $4.6 million in restitution, which accounts for both the embezzled funds and an unpaid loan. After completing his prison term, he will serve two years of supervised release.
As per court records, Meissner worked at Delphi Digital between October 2021 and November 2022, where he managed access to the company’s cryptocurrency wallets and bank accounts.
In January 2022, Delphi loaned Meissner 50 Ether—valued at approximately $170,000 at the time—to help him cover personal financial losses. Meissner failed to repay this loan and subsequently misappropriated an additional $4.46 million from the firm.
To hide the theft, Meissner altered financial records and diverted funds that were meant for employee bonuses. Delphi Digital terminated his employment in November 2022 after uncovering the scheme. The company immediately reported the matter to authorities.
In July 2024, Meissner pleaded guilty to wire fraud and later agreed to a plea deal, waiving his right to appeal. He is required to report to prison by February 21, 2025. As part of his defense, Meissner’s legal team cited a history of substance abuse and highlighted his acknowledgment of wrongdoing, including creating a detailed report of the financial losses he caused to Delphi.
Prosecutors dubbed the embezzlement as a deliberate and sustained effort rather than an impulsive action. They pointed to evidence suggesting that Meissner intended to use the stolen funds to recover personal financial losses and profit, with plans to repay Delphi once crypto market conditions improved. This strategy, prosecutors argued, demonstrated calculated decision-making rather than compulsion or addiction-driven behaviour.
“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,” they added.
Anil Lulla, co-founder and CEO of Delphi Digital, expressed disappointment in the breach of trust but commended his team for remaining committed to the company’s goals despite the setback. In a statement, Lulla thanked the authorities for their efforts in addressing the issue and emphasized the importance of maintaining trust and integrity within the firm.
