Binance sued in Canada for securities law violations

Helen Partz1 hour agoBinance sued in Canada for securities law violationsEven after Binance announced its departure from Canada in May 2023, local authorities have continued to investigate the exchange.1187 Total views2 Total sharesNewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksCryptocurrency 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.Source: Ontario’s Superior Court of Justice

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).

Binance is a major global cryptocurrency exchange accounting for 58% of the total spot trading volumes among centralized exchanges as of March 2024. Apart from its leading position as a major spot crypto trading venue, Binance also operates the biggest derivatives market among other exchanges like Bybit and OKX.

According to data from Bybit, the derivatives market for centralized exchanges (CEXs) is “almost entirely dominated” by Binance, OKX and Bybit.Trading volumes changes of Binance, OKX, Bybit and other platforms between October 2023 and March 2024. Source: Bybit

The latest class action against Binance comes a few years after the crypto exchange announced in June 2021 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 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.

Cointelegraph approached Binance for a comment regarding the class action lawsuit in Ontario but did not receive a response at the time of publication.

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