The SEC is alleging he broke rule 10b-5, which says that the defrauding actions must be "in connection with the purchase or sale of any security".
The SEC complaint doesn't seem to allege negligence at all, in the claim for relief it says 'Defendant, with scienter' which definitely does not imply negligence.
The complaint alleges that the statements were made in connection with the sale of securities but I don't really understand where that comes from.
Anything that effects price is connected with the selling of securities. In fact, his very statement was equivalent to "Buy now, and make an easy $420 per share!", and people did actually purchase the stock.
The SEC complaint doesn't seem to allege negligence at all, in the claim for relief it says 'Defendant, with scienter' which definitely does not imply negligence.
The complaint alleges that the statements were made in connection with the sale of securities but I don't really understand where that comes from.