Dropil (DROP)
An ICO for the DROP token built around a fake 'Dex' trading bot. The SEC said it raised ~$1.9M while claiming $54M from 34,000 investors, and that the founders falsified evidence during the probe. Founders Jeremy McAlpine and Zachary Matar pleaded guilty to securities fraud (36 and 30 months).
Also known as: Dropil, DROP, DROPs, Dex
Summary
Dropil, Inc. (incorporated in Belize, operated from California) sold "DROP" tokens in a 2018 ICO, claiming investor funds would be pooled and traded by an algorithmic "trading bot" called Dex that paid profits in DROPs every 15 days. Per the SEC, Dex was not genuinely profitable; the founders diverted funds to other projects and personal accounts and faked Dex's performance. [1][2]
The fraud and outcome
The founders claimed the ICO raised $54 million from 34,000 investors; in reality it raised under ~$1.9 million from fewer than ~2,500. During the SEC's investigation they manufactured fake profitability reports and a fake investor spreadsheet, and gave false testimony. The SEC charged them in April 2020; founders Jeremy McAlpine and Zachary Matar pleaded guilty to securities fraud in August 2021 and were sentenced to 36 and 30 months, respectively (a third founder, Patrick O'Hara, was named in the SEC case). [1][2]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
- Jeremy McAlpineCo-founderIndividualsCo-founder of Dropil, which ran a fraudulent DROP-token ICO around a fake 'Dex' trading bot. He pleaded guilty to securities fraud in 2021 and was sentenced to 36 months; he also gave false testimony and manufactured fake evidence during the SEC probe.
- Zachary MatarCo-founderIndividualsCo-founder of Dropil and its fraudulent DROP-token ICO. He pleaded guilty to securities fraud in 2021 and was sentenced to 30 months in prison.
Sources (2)
See also
- Bitcoin Latinum (LTNM)TokensA ~$16M token offering (SAFTs for 'Bitcoin Latinum' / LTNM) that the SEC charged in 2026 as fraud: founder Donald Basile falsely called LTNM 'the world's first insured digital asset' backed by an 'existing trust,' neither of which existed, and diverted investor funds for personal use (including a $160,000 horse).
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.