- Founder Chris Kirschner was sentenced to 20 years in prison for misappropriating start-up funds.
- Prosecutors alleged that Kirchner went on lavish purchases, including a private jet worth $16 million.
- Slync, a supply chain technology startup founded by Kirchner, closed in October 2023.
Chris Kirchner, the startup founder convicted of defrauding investors, money laundering and wire fraud, was sentenced Thursday to 20 years in federal prison for misappropriating $25 million in investor cash for his own use, according to court documents.
Kirchner, 36, founded Slync, a supply chain technology startup that raised more than $50 million from venture capitalists, including Goldman Sachs, between 2018 and 2021. Prosecutors said Kirchner transferred millions of dollars of the company’s funds to himself in 100 separate transactions through multiple accounts. Kirchner also transferred $20 million directly to his own checking account, according to the U.S. Attorney’s Office for the Northern District of Texas.
In addition to the prison time he will serve in the Dallas/Fort Worth area, Kirchner was ordered to pay $65,415,938.12 in restitution, though the judge did not impose a fine because “defendant lacks the financial resources and future earning capacity to pay the fine,” according to the ruling.
“Even as his company was on the brink of collapse, Chris Kirchner used millions of dollars of investor money for himself,” U.S. Attorney for the Northern District of Texas, Leigh Simonton, said in an emailed statement. “Apparently, creating personal prosperity was more important to him than earning a paycheck. His duplicity earned him 20 years in prison. We are proud to hold him accountable for his crimes and are committed to pursuing all businessmen who engage in criminal activity.”
In June 2022, some Slink staff told BI they had not received their pay for several weeks. At the time, Kirchner maintained the company was financially healthy. A few weeks earlier, he had been bidding to buy English football club Derby County, sparking uproar among the club’s fans on social media and in the sports press.
The startup has also attracted attention for its participation in lucrative sports sponsorship deals, which is unusual for a startup, including a five-year sponsorship of the DP World Tour Desert Classic golf tournament.
Kirchner eventually withdrew his offer to the football club, blaming the software provider for his company’s pay problems, and the golf contract was soon terminated.
Kirchner was suspended by the company’s board of directors in July 2022 and fired the following month. The board appointed a new CEO and the company attempted to restructure, but ultimately closed in October 2023.
The FBI searched Kirchner’s home in Westlake, Texas, in February 2023. He was subsequently indicted and arrested on securities fraud charges. He was indicted last May and further indicted in January 2024 on charges of defrauding investors.
Kirchner’s lawyer did not immediately respond to a request for comment.
