The lawsuit in Canada alleges that the exchange violated securities law and sold derivatives to retail investors without proper registration.
Currently, the case is under review by Ontario’s Superior Court of Justice, marking a significant development for Binance.
Legal Action Against Binance in Canada for Breaching Securities Laws
The legal action, initiated by Christopher Lochan and Jeremy Leeder, claims that Binance breached the Ontario Securities Act (OSA) by continuing operations in Ontario without the necessary license.
The lawsuit demands compensation and calls for Binance to halt its derivatives services in Canada, citing potential risks to the thousands of Canadian users engaged in the exchange’s derivatives offerings.
🟡 @binance faces legal challenges with a class-action lawsuit alleging violations of securities laws in Canada. pic.twitter.com/kCAmXUQNIR
— Cointelegraph (@Cointelegraph) April 23, 2024
Recent data reveals that Binance commands 58% of spot trading volumes among centralized exchanges and holds a dominant position in the derivatives market alongside Bybit and OKX.
Moreover, the lawsuit highlights Binance’s alleged failure to discontinue operations in Ontario as previously indicated. The exchange had encountered regulatory scrutiny from the Ontario Securities Commission (OSC) in 2021, with ongoing investigations into its activities. This legal issue in Canada is not the first instance where Binance has faced regulatory challenges, as multiple countries have raised concerns about its operations.
Additional Legal Troubles and Regulatory Scrutiny
Recent events include the arrest of two Binance executives by Nigerian authorities over allegations of involvement in the manipulation of the Nigerian naira.
Binance executive Tigran Gambaryan is detained in Nigeria until at least May 17 following accusations of money laundering. @cheyenneligon reportshttps://t.co/HafzdB7YNL
— CoinDesk (@CoinDesk) April 23, 2024
Furthermore, Binance is embroiled in legal issues in the Philippines, where the securities regulator asserts that the exchange lacks the necessary registration to operate within the country.
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