Canada level-up-level-up: Binance, the cryptocurrency exchange, faces a new class-action lawsuit in Canada, in which it is being alleged that it has violated local security laws.
Today, Ontario's Superior Court of Justice certified the motion for a class-action lawsuit against Binance, which was published on April 19.
Plaintiffs, represented by Christopher Lochan and Jeremy Leeder, however, argue that Binance sold crypto-derivative products in contravention of the Ontario Securities Act (OSA) and federal law.
The lawsuit seeks damages and rescission of unauthorized derivatives trades.
The Plaintiffs claim tens of thousands of people invested in its cryptocurrency derivatives products through the website.
"It's worth noting here that the bulk of cryptocurrency derivatives traders are retail investors," reads the certification motion, adding that the Ontario Securities Commission (OSC) reports that over half of Canadians who own cryptocurrency have at least $5,000 of exposure to the crypto market.
The latest class-action suit against Binance comes a few years after the crypto exchange announced plans in June 2021 to cease operations in Ontario, following a warning from the OSC.
Instead, the new court document now reads, "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.". Inevitably, local authorities have brought actions against the exchange, even after Binance announced that it would be leaving Canada in May 2023. "The OSC's investigation into the Defendants is ongoing," the court motion read.