Regulation
Dropil Inc. Find Themselves in the SEC Bad Books
Not So Quick
Yet another company is experiencing a time of reckoning. This time, on the stage is ‘Dropil’. In a recent filing, the SEC has accused this company of a variety of crimes. The following are just a few of these:
- Hosted an unregistered securities offering
- Sold ‘DROP’ tokens from Jan – Mar, 2018
- Lied to investors about future usage of funds generated
- Used investments to fund lavish lifestyle, spending money on personal items
- Lied to investors about the success of the ICO
- Falsely reported total investments generated to present the ICO as being more appealing
- Committed fraud by providing the SEC with falsified documents
- Fake documents purporting to prove trading activity, and ICO participants
- Hosted an unregistered securities offering
By the Numbers
With regards to the amount of money raised in their unregistered offering, not only was the actual amount of money raised done so in an illegal fashion, but they misrepresented the scope of their event to other prospective investors.
Claimed
- Investors – 34,000
- Funds Raised – $54 Million
Actual
- Investors – 2,500
- Funds Raised – $1.9 Million
Commentary
In their filing, the SEC has requested the following consequences to be doled out, due to the company's various transgressions.
“The SEC seeks permanent injunctions prohibiting future violations of the federal securities laws by defendants, conduct-based injunctions permanently enjoining each defendant from directly or indirectly participation in the offer, purchase, or sale of digital asset securities, and an order requiring defendants to disgorge their ill-gotten gains, along with pre-judgement interest, and imposing a civil penalty on the defendants.”
Dropil
Founded in 2018, Dropil lists their headquarters as being located in Belize City. Above all, the team at Dropil has promised to bring simplicity to cryptocurrencies through the automation of various services.
Cofounders Jeremy McAlpine, Zachary Matar, and Patrick O’Hara currently oversee company operations.
SEC
The Securities and Exchange Commission is a regulatory body based in the United States. This outfit is tasked with creating an enforcing regulations surrounding securities. The overall goal of the SEC is to foster and ensure fair and transparent markets for all participants.
Chairman, Jay Clayton, currently oversees operations at the SEC.
In Other News
Dropil is only one of many companies currently embroiled in court proceedings. We recently took a brief look at multiple other cases, and recent developments pertaining to each. Make sure to check out the following article to learn more about how these cases are progressing.
Lawsuit Roundup – Ripple vs. YouTube, Blockvest vs. SEC, OneCoin vs. SEC
