SEC Files Fraud Charges Against Dropil Over $1.8 Million ICO

Another ICO bites the dust. The SEC is seeking disgorgement and other penalties from Dropil over its allegedly fraudulent token sale.

  • SEC has filed charges against Dropil over its 2018 ICO.

  • SEC is seeking disgorgement of the $1.8 million the company raised.

  • Dropil is the latest ICO-funded crypto startup in a long list that the SEC has targeted.

The Securities and Exchange Commission (SEC) today filed charges against Dropil, Inc. and its founders—Patrick O’Hara, Jeremy McAlpine and Zachary Matar—in a federal California court for allegedly defrauding investors and hosting an unregistered initial coin offering (ICO). The SEC is seeking disgorgement of Dropil’s ICO funds, injunctive relief, and other civil penalties.

In a press release, the SEC said Dropil, Inc. sold its cryptocurrency—known as DROP tokens—between January and March of 2018, raising more than $1.8 million from investors. The SEC’s complaint alleges that Dropil and its founders informed participants that their money would be pooled together by a trading bot known as Dex, and that the funds would be combined to trade assorted digital currencies using a Dropil-designed algorithm. According to the SEC, however, none of that ever happened. Read More...

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