Binance Lawsuit in Canada Following Securities Law Violation Allegations
Cryptocurrency exchange Binance has been slapped with a new class-action lawsuit in Canada following allegations of security law violations.
On April 19, Ontario’s Superior Court of Justice published a certification motion for a class-action lawsuit, putting Binance back in the legal hot seat yet again.
The lawsuit stems from suspected security law violations, alleging that Binance sold crypto derivative products to retail investors without registration.
Plaintiffs represented by Christopher Lochan and Jeremy Leeder claim that Binance violated the Ontario Securities Act (OSA) and federal law through these sales.
The lawsuit seeks damages and recissions of unlawful derivative trades for the tens of thousands of Canadian Binance users who invested in its cryptocurrency derivatives products.
According to the Ontario Securities Commission (OSC), more than 50% of Canadian crypto owners have at least $5000 in the market, with the certified motion adding that “cryptocurrency derivatives traders include a great many retail investors.”
This class action comes just a few years after Binance announced plans to cease operations in Ontario, Canada after the OSC hit the firm with a warning following a regulatory crackdown.
“As a result of its failure to adhere to this announced cessation of sales, in early 2022, the OSC notified the defendants of its intention to seek a cease trade order,” the new court document reads.
Despite Binance’s announcement to depart from Canada in May 2023, the exchange is still on local authorities’ radar. “The OSC’s investigation into the defendants is ongoing,” the court motion reads.
This represents another blow to Binance’s efforts to justify the company’s position as the leading
