Two founders of Dropil were sentenced to prison for a crypto scam. On 1 August, the US Attorney’s Office in California published a release on the official website about the news.
The Two Founders of Dropil
In recent news, two founders of Dropil were sentenced to prison for a crypto scam. The founders of Dropil are Jeremy McAlpine and Zachary Matar. They were conning over 2,000 investors into purchasing a cryptocurrency, then used $1.9m raised to fill their pockets.
— BREAKING WEB 3.0 (@web3advisory) August 1, 2022
In 2017, McAlpine and Matar founded Dropil. Dropil managed investments in digital assets, including a cryptocurrency called DROP. Both founders were also involved in developing a digital asset trading program, an automated trading bot named Dex.
Later, they were trying to attract investors into purchasing DROP by making misleading statements about DROP, the functionality and profitability of Dex, and the number of investors and investments they achieved. Moreover, they had not registered as a dealer or broker in the SEC. McAlpine and Matar also fabricated their website and Twitter accounts by stating the success of their cryptocurrency.
For their actions, McAlpine and Matar pleaded guilty in August 2021. Now, they are sentenced to federal prison for 36 months and 30 months, respectively.
Fraud Activities in Crypto
The ups and downs in the crypto market are not the only things people in the community have to avoid. Fraud activities in crypto are everywhere. They can trick investors into thinking they are legal businesses. These kinds of reports of scams and fraud remind everyone in the community to always be careful in choosing their investments.