Binance, one of the world’s largest cryptocurrency exchanges, is embroiled in a new legal battle in Canada after a class-action lawsuit was filed alleging violations of securities laws. The Ontario Superior Court of Justice issued a motion for certification of the lawsuit on April 19, reopening a legal investigation into the exchange.
The lawsuit accuses Binance of selling cryptocurrency derivatives to individual investors without proper registration, in violation of the Ontario Securities Act (OSA) and federal law. The plaintiffs, represented by Christopher Lochan and Jeremy Leeder, seek damages and reversal for illegal derivative trading on tens of thousands of Canadian Binance users.
This legal action comes after Binance announced plans to cease operations in Ontario in 2023 in response to a regulatory warning from the Ontario Securities Commission (OSC). Despite this announcement, the OSC’s investigation into Binance continues, highlighting ongoing regulatory scrutiny.
The lawsuit further damaged Binance’s reputation, already tarnished by previous controversies, including former CEO Changpeng Zhao’s guilty plea to U.S. anti-money laundering violations in 2021. Current CEO Richard Teng has worked to steer Binance toward regulatory compliance, including securing the Dubai cryptocurrency, but the exchange’s past regulatory issues due to licensing continue to overshadow its progress.
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