Westport Man Sentenced to Four Years for $4.6M Cryptocurrency Fraud

Westport resident Dylan Meissner, 31, has been sentenced to four years in federal prison for embezzling $4.6 million from his employer, the cryptocurrency research firm Delphi Digital, according to the Department of Justice.

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Meissner, a former vice president of finance at Delphi Digital, had “exploited the company’s trust and generally abused our trust in him as a friend and team member,” according to statements previously made by the company’s co-founder and CEO, Anil Lulla.

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Court documents indicate that Meissner began working for Delphi Digital in October 2021, gaining access to the company’s cryptocurrency wallets and bank accounts. In January 2022, he secured a loan of 50 Ethereum (approximately $170,000 at the time) from the firm to address personal cryptocurrency investment losses. However, from February to November 2022, Meissner continued misappropriating company funds to cover his personal trading deficiencies, falsifying entries in the company’s financial records to conceal his actions.

Meissner redirected payments intended for Delphi Digital from an affiliated company into cryptocurrency wallets he controlled. He also diverted funds earmarked for employee bonuses, providing false explanations to analysts about delayed or unpaid bonuses. Additionally, he manipulated vendor payments by inflating recorded amounts, keeping half for himself while paying vendors the remaining portion. Meissner further consolidated small balances of leftover cryptocurrency, known as “dust,” from company wallets, transferring them to his personal accounts under the pretense of managing them for the firm.

By the time of his termination in November 2022, Meissner had misappropriated approximately $4.6 million.

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U.S. District Judge Michael P. Shea presided over the case in Hartford, sentencing Meissner to 49 months of imprisonment, followed by two years of supervised release. The sentence is shorter than the 78–97 months prosecutors sought, as they argued that his actions constituted a “sustained, multifaceted scheme” to defraud Delphi and were far more serious than a “momentary lapse in judgment.” Meissner’s defense team, however, argued for leniency, citing his struggles with substance abuse and inability to maintain sobriety as contributing factors in his decision making. They also emphasized his cooperation with the investigation, including providing a detailed spreadsheet documenting the financial losses he caused.

Additionally, Meissner was ordered to pay restitution totaling $4,633,424.99, which includes the stolen funds and the unpaid loan. He remains free on a $100,000 bond and is required to report to prison on February 21, 2025.

The FBI conducted the investigation, and Assistant U.S. Attorney David E. Novick prosecuted the case. In court, Novick stated, “This was not a drug-induced haze,” stating that Meissner’s actions were deliberate and calculated. He further argued that Meissner intended to profit from the firm’s funds, planning to repay them once market conditions improved.

Meissner previously drew the attention of local news in November 2011 when, at the age of 18, police said he struck a pedestrian with his vehicle on Post Road East in Westport. The victim sustained serious injuries. Police reports noted that the road was wet, poorly lit. The site of the collision  had been previously known as the location of numerous prior accidents. There is no indication that any charges were ever filed in connection with the incident.