In a Law360 article originally published November 16, 2023, Andrew J. Ceresney, Julie M. Riewe and Stephan J. Schlegelmilch discuss SEC v. Govil, a recent United States Court of Appeals for the Second Circuit opinion in which the court held that disgorgement is an equitable remedy and that the SEC cannot obtain disgorgement if they cannot identify a “victim” with a “pecuniary harm.” This appears to have particular import for non-fraud crypto cases in situations where buyers of tokens got the benefit of their bargain–i.e., the tokens. The article, “2nd Circ. Holding Could Disrupt SEC Disgorgement Methods,” is available here.
***
To subscribe to the Debevoise Fintech Blog, click here.
***
