California-based Ocean Fathoms offered bottles “adorned with barnacles, coral, sea shells and ornate hard shelled tubes formed by annelida sea worms” after undergoing a “patented ocean ageing process”, according to its website.

However, prosecutors said the company did not have permission to dump the crates of wine off the Santa Barbara coast and had not complied with state and federal laws on selling alcohol, USA Today reports.

Santa Barbara District Attorney’s Office alleged that “nearly every aspect of their business was conducted in violation of state or federal law”, with the bottles not cleared for human consumption following the process.

The company’s remaining bottles were handed over to local officials as part of a plea agreement involving two of the company’s three co-founders.

As part of the agreement, the two co-founders have pleaded guilty to misdemeanour charges of illegally discharging material into US waters, selling alcohol without a licence and aiding and abetting investor fraud.