Binance Sued in Canada for Securities Law Violations

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.

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 Ontario Securities Commission (OSC) approached the firm with a warning.

"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.

(Source: CoinTelegraph)