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
$MELANIA tokenMarket manipulationA Solana memecoin announced by Melania Trump on Jan 19, 2025. Per FT analysis, ~24 wallets bought in minutes before the public announcement and netted ~$99.6M as retail piled in; the token then fell 95%+. Early buys were traced to wallets linked to $LIBRA figure Hayden Davis. No charges have been filed.
$TRUMP tokenMarket manipulationA Solana memecoin launched days before Donald Trump's second inauguration (Jan 2025). Trump-linked entities hold 80% of supply and earned $320M+ in fees while ~760,000 mostly-retail wallets lost money; a 'dinner with the president' promotion for top holders drew conflict-of-interest scrutiny. The 'scam' label is contested and no charges have been filed.
This page was last updated on Jun 15, 2026. View revision history.