Dylan Meissner, the former Vice President of Finance at a cryptocurrency research firm, was sentenced to 48 months in federal prison on December 18, 2024, for embezzling $4.46 million from his employer. US District Judge Michael P. Shea also ordered Meissner to serve two years of supervised release and pay $4,633,424.99 in restitution.

Court records reveal that Meissner exploited his position by diverting funds from the company’s cryptocurrency wallets and bank accounts between February and November 2022. Initially, he obtained a 50 Ethereum loan (worth approximately $170,000) under the pretext of covering personal trading losses. He later escalated his fraudulent activities, using company funds to cover additional losses and falsifying records to conceal his theft.

The embezzled amount, intended to counteract significant personal cryptocurrency trading losses, was hidden through falsified entries in the firm’s financial records.

Meissner, who pleaded guilty to wire fraud in July 2024, is required to report to prison on February 21, 2025. Judge Shea’s order for restitution includes the initial loan and the stolen funds.

The Federal Bureau of Investigation (FBI) conducted the investigation, which revealed that Meissner’s actions caused financial harm to his employer. The company’s internal review and cooperation with investigators played a significant role in uncovering the extent of the embezzlement.

According to court documents, Meissner’s defense team argued against the application of sentencing enhancements, contending that his actions did not cause substantial financial hardship under legal definitions. They further highlighted Meissner’s personal struggles with substance abuse during the period of his offenses, portraying him as someone attempting to rectify his wrongs through rehabilitation and cooperation with authorities.

In a pre-sentencing memorandum, Meissner’s attorneys requested leniency, citing his two years of sobriety and efforts to begin repaying his debts. Despite these arguments, the court determined that a prison term was necessary to reflect the seriousness of the offense and deter future misconduct in the financial sector.