Cryptocurrency exchange Binance faces class-action lawsuit in Canada

The lawsuit claims that Binance sold crypto derivative products without registration, in violation of the Ontario Securities Act. The plaintiffs are seeking damages and the rescission of unlawful trades

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Cryptocurrency exchange Binance is facing a class-action lawsuit in Canada for allegedly violating local securities laws. The lawsuit, filed in the Ontario Superior Court of Justice, claims that cryptocurrency exchange sold crypto derivative products without proper registration, breaching the Ontario Securities Act and federal law.

Plaintiffs, are seeking damages and the rescission of unlawful derivatives trades. They argue that tens of thousands of Canadian users invested in Binance’s cryptocurrency derivatives products. The certification motion highlights the significant involvement of retail investors in cryptocurrency derivatives trading.

The class-action lawsuit follows Binance’s announcement in June 2021 to cease operations in Ontario after a warning from the Ontario Securities Commission. Despite Binance’s departure from Canada in May 2023, the investigation into its activities by local authorities has continued. The court motion confirms that the Ontario Securities Commission is actively examining the defendants.

Notably, no comment or response from Binance regarding the class-action lawsuit has been provided in the news text. Therefore, the official stance of Binance on the allegations remains undisclosed.