Edit: Dropil (DROP) — CryptoScamsWiki

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## 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]

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