The law once again pursues crypto scammers: two criminals were sentenced to three years in prison for stealing $1.9 million from their customers. “Investment management service” Dropil was caught defrauding 2,000 of its customers by promising them access to a trading bot despite it not functioning as advertised.
The losers invested in Dropil’s DROP token, with the promise of financial returns of up to 63 percent. Under pressure from regulators, project leaders forged reports and lied under oath. They have now pleaded guilty to securities fraud and will serve a combined five and a half years in prison.
Jeremy David McAlpine received the longest sentence, he will serve 36 months in federal prison. Zachary Michael Matar was sentenced to 30 months in prison for his role in the project. McAlpine and Matar pleaded guilty to securities fraud back in 2021, admitting they deceived investors about what they would receive in exchange for buying their DROP token.
Clients were promised access to “Dex”, a trading bot that would help them achieve returns between 24 and 63 percent. During the investigation by the regulators, these figures were found to be false.
In sentencing, prosecutors denounced McAlpine and Matar’s actions. “They caused significant financial damage to an extremely large number of victims,” prosecutors commented. “They made efforts to thwart law enforcement attempts to identify and eliminate wrongdoing.”
McAlpine and Matar are far from the only crypto executives to face legal repercussions. As we recently reported, the fight against Web3 scammers is getting tougher in the US, and one of the defendants faces 115 years in prison if found guilty. Another, who allegedly swindled investors out of $2.6 million, faces 40 years in prison.