Kim v. Jump Trading, LLC

Plaintiff and a proposed class of investors in cryptocurrency filed a lawsuit against the defendants blockchain companies under the Commodities Exchange Act as well as under the common law of unjust enrichment. Plaintiff alleged that the defendants conspired to manipulate the price of a cryptocurrency in a way that was misleading to investors. Defendant argued that equitable estoppel required plaintiff to arbitrate his claim because plaintiff signed an arbitration agreement with a third-party to allow him to trade the cryptocurrency and because defendant could have a right of contribution against the third party. The Seventh Circuit affirmed the district court’s denial of defendant’s motion to compel arbitration, explaining that defendants were not entitled to equitable estoppel where there was no evidence that they relied on representations made by plaintiff. (SCUDDER and KIRSCH, concurring)