Dropil agreed to plead guilty to $1.9 million ICO fraud The | DeFi Protocol

Dropil agreed to plead guilty to $1.9 million ICO fraud

The U.S. Department of Justice (DOJ) announced that the founders of cryptocurrency project Dropil (DROP), Jeremy McAlpin and Zachary Matar, have agreed to plead guilty to nearly $1.9 million in ICO fraud.

According to the indictment, they sold DROP tokens to thousands of investors, with the funds raised allegedly intended to fund the activities of the Dex trading bot.

According to the DOJ, neither McAlpin nor Matar are registered with the U.S. Securities and Exchange Commission (SEC). Prosecutors added that the defendants made "a series of false statements to investors in a white paper" on Dropil's website and Twitter profile to "promote the success of cryptocurrency."

"Defendants manufactured fake reports about Dex's profitability and translated DROP to Dex users, creating a false impression of its functionality and profitability," the agency said in a statement.