Ontario court sues Binance for securities law violations

abdelaziz Fathi

Ontario’s Superior Court of Justice has filed a class action lawsuit against cryptocurrency exchange Binance for allegedly selling crypto derivative products to retail investors without registration, violating securities laws.

Recent troubles are not the first for Binance in Canada, which has faced uphill battles with its provincial regulators throughout the last few years.

The lawsuit seeks both damages and rescission of these trades. It also claims that Binance’s operations failed to comply with necessary registrations and prospectus filings as stipulated by securities regulations. “The plaintiffs claim that those sales were illegal and void for lack of the required registration,” the court noted in its ruling.

While certifying the class action, the court recognized that crypto contracts are considered securities or derivatives under current regulations, and that the marketing of these contracts qualifies as distribution. “The plaintiffs have met the evidentiary burden…establishing some basis in fact that the issues raised in the four liability questions are common across the class,” the decision stated.

Previously, Binance was found by Ontario courts to have operated its platform and made it accessible to Canadian users. Amid regulatory scrutiny by the Ontario Securities Commission (OSC), Binance committed in mid-2021 to cease its dealings with Canadian investors and started winding down its operations in Ontario by early 2022. In the weeks leading up to Binance’s departure, the exchange rescinded that commitment, claiming that its authorization as a money services business allows it to continue operating in the province.

The industry’s giant seemingly opted to pull out of Ontario, rather than comply with securities law or face regulatory scrutiny. An ongoing investigation by the OSC into potential regulatory breaches by Binance has not yet resulted in formal allegations.

The Ontario court also addressed Binance’s argument that it merely facilitated trades between investors, not acting as a direct party. The court rejected this, stating, “The only contracts found in the record are between class members and Binance itself,” likening the relationship to that between a customer and a store, rather than between independent parties.

The court’s decision paves the way for the assessment of damages, interest, and costs on a class-wide basis, with all investors who purchased cryptocurrency derivative contracts from Binance since September 13, 2019, eligible to join the class action.

Read this next


Top Crypto Millionaire Picks: ETH, SOL, BLP

The market is buzzing with the arrival of a new bull run, and savvy investors are closely watching certain cryptocurrencies that show promise for substantial returns.


Influencer Examines BlockDAG Advances as Presale Hits $27.7M Amid Updates on Solana Transaction Fees and Injective (INJ) Price

Discover what famous YouTube influencer CryptoDexWorld has to say about BlockDAG’s presale performance and mining capabilities. More on Solana Transaction Fees and Injective (INJ) Price Updates.


Discover the Best Altcoins to Buy: Exploring Near Protocol, Cardano, and BlockDAG’s 30,000x Potential

Explore top altcoins like Near Protocol, and Cardano, and discover BlockDAG’s massive potential. Join us!


Crypto Influencer Crypto Rick Endorses BlockDAG Amid $27.7M Presale Success; TRON Price & BCH See Surge

Crypto Rick endorses BlockDAG, boosting its $27.7M presale amid TRON and Bitcoin Cash surges. Explore why BlockDAG is a top crypto investment.


These Altcoins Have The Potential To Make You a Millionaire in 2024

The crypto market is witnessing a surge, and certain alternate coins are catching attention for their rapid growth.

Digital Assets

Point72 invests $77.5 million in Bitcoin, Morgan Stanley holds $269.9 million

Point72, the $34 billion hedge fund owned by billionaire and New York Mets owner Steven Cohen, held $77.5 million in the Fidelity Wise Origin Bitcoin Fund (FBTC) at the end of the first quarter, according to a recent filing.

Digital Assets

Binance claims Nigerian officials sought $150 million bribe

A Nigerian court has ruled that Tigran Gambaryan, a Binance executive detained on charges of tax evasion and money laundering, can stand trial on behalf of the world’s largest cryptocurrency exchange.

Digital Assets

Kraken reviews Tether listing in Europe ahead of MiCA adoption

Cryptocurrency exchange Kraken is “actively reviewing” whether to delist the stablecoin Tether (USDT) from its European platform, according to a report by Bloomberg.


Discover How MoonBag Coin Presale Stacks Up Against Dogecoin & Litecoin

Discover how the MoonBag Coin presale compares to Dogecoin and Litecoin, with unique features, a robust presale structure, and new opportunities in 2024.