KEY POINTS
Binance, a prominent player in the digital currency market, finds itself embroiled in fresh class-action litigation in Canada, facing allegations of violating securities laws.
The Ontario Superior Court of Justice has set in motion a legal proceeding on April 19, sanctioning a collective lawsuit targeting Binance, marking yet another judicial hurdle for the crypto exchange.
Ontario Securities Act and National Statutes Violations
The plaintiffs’ representatives, Christopher Lochan and Jeremy Leeder, highlighted that Binance contravened Ontario’s Securities Act and other national statutes by engaging in the sale of cryptocurrency derivatives. Their primary objective is to seek compensation for damages incurred by investors and to nullify any transactions deemed unlawful.
The motion sought to demonstrate that a significant number of people traded cryptocurrency derivatives, drawing upon data from the Ontario Securities Commission (OSC). According to this data, more than half of Canadian cryptocurrency holders possess assets valued at over $5,000, indicating a substantial interest and investment in the cryptocurrency market.
Market Manipulation Allegations
In March 2024, Binance continues to hold a leading position in the worldwide cryptocurrency exchange market, overseeing 58% of spot trading volumes across centralized exchanges.
Also, allegations of market manipulation have surfaced in light of data from Bybit. This legal challenge follows Binance’s decision in June 2021 to halt operations in Ontario after receiving a warning from the OSC.
In early 2022, the OSC notified relevant parties of its intention to issue a cease trade order against Binance due to its failure to comply with a previously issued suspension of sales. This ongoing legal saga underscores the complexities and regulatory challenges faced by cryptocurrency exchanges operating within various jurisdictions.
