SEC v. Arbitrade

The SEC sues Arbitrade for an alleged crypto pump-and-dump scheme, claiming that Arbitrade made material misrepresentations and omissions to investors while offering and selling DIG tokens and engaged in a scheme to defraud. The Florida District Court denies the defendant's request for an interlocutory appeal following the court's denial of the defendant's motion to dismiss the fraud and Section 5 violation claims.

The court rejects the defendant Braverman’s argument that they are not liable for aiding abetting. This case demonstrates when a person may be liable for aiding and, even though such defendant lost on their motion to dismiss, provides a potential framework for arguing against aiding and abetting liability.

1:22-cv-23171