SEC Blasts Dropil’s ‘Scattered Arguments’ About Liu Ruling

Law360 (September 1, 2020, 8:17 PM EDT) — The U.S. Securities and Exchange Commission told a California federal judge Monday that cryptocurrency company Dropil and its founders made “no logical sense” when they asked the court to dismiss the regulator’s securities offering fraud claims in light of the U.S. Supreme Court’s Liu decision.

In its Aug. 31 brief opposing a partial dismissal bid by Dropil Inc. and co-founders Jeremy McAlpine and Zachary Matar, the SEC told U.S. District Judge Otis D. Wright II that the dismissal request made “a series of scattered arguments that reflect [defendants’] own confusion more than any coherent legal theory.”

“Defendants confuse causes of action…