Cryptocurrency exchange Binance has been slapped with a new class-action lawsuit in Canada, with plaintiffs alleging that the firm has violated local securities laws.
Ontario’s Superior Court of Justice published a certification motion on April 19 for a class-action lawsuit against Binance alleging that it sold crypto derivative products to retail investors without registration.
According to plaintiffs represented by Christopher Lochan and Jeremy Leeder, Binance sold crypto derivatives products in violation of the Ontario Securities Act (OSA) and federal law.
The lawsuit seeks damages and rescission of unlawful derivatives trades.
The plaintiffs argued that tens of thousands of Canadian users of the Binance website invested in its cryptocurrency derivatives products.
“It is noteworthy here that cryptocurrency derivatives traders include a great many retail investors,” the certification motion reads, adding that more than 50% of Canadian crypto owners have at least $5,000 in the market, according to the Ontario Securities Commission (OSC).
The latest class action against Binance comes a few years after the crypto exchange in June 2021 announced plans to cease operations in Ontario after the OSC approached the firm with a warning.
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“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.
Even after Binance announced its departure from Canada in May 2023, local authorities have continued to crack down on the exchange. “The OSC’s investigation into the Defendants is ongoing,” the court motion reads.
This is a developing story, and further information will be added as it becomes available.
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