Dropil Founders Sentenced for a $1.9 Million Fraud

02.08.2022 11:32
by Nina Petrov
1 min read

Jeremy McAlpine and Zachary Matar, founders of the fraudulent company Dropil, have been sentenced to 3 and 2.5 years in prison respectively, after pleading guilty to securities fraud.

The sentencing comes two years after the charges were brought before the court in California. McAlpine and Matar were accused of misleading crypto investors regarding the Dropil coin, DROP. In total, they received $1.9 million out of the scammed investors.

After launching the coin during the ICO mania in 2017, the two intentionally provided fabricated information, promising that DROP would bring annual returns of 24-63% to investors. They created fake profitability reports and claimed that Dropil received $54 million in investment money, when it had only received under $2 million. Moreover, they are sentenced for failing to register Dropil with the Securities and Exchange Commission (SEC).

This is yet another recent example of the SEC stepping up and dealing justice in the crypto realm. Just a week ago, Michael Stollery, CEO of the CEO of Titanium Blockchain Infrastructure Service, also pleaded guilty to a securities fraud. And a few days before that, SEC made its first ever crypto insider trading arrest.

Author

  • Nina Petrov is a theoretical mathematician, passionate about new trends in the global economy and blockchain technology. She is a devoted content creator and editor, crypto-enthusiast and stock market analyst.

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