Binance Lawsuit in Canada Following Securities Law Violation Allegations

Cryptocurrency exchange Binance has been slapped with a new class-action lawsuit in Canada following allegations of security law violations. ,On April 19, Ontario’s Superior Court of Justice
published
a certification motion for a class-action lawsuit, putting Binance back in the legal hot seat yet again.,The lawsuit stems from suspected security law violations, alleging that Binance sold crypto derivative products to retail investors without registration.,Plaintiffs represented by Christopher Lochan and Jeremy Leeder claim that Binance violated the Ontario Securities Act (OSA) and federal law through these sales.,The lawsuit seeks damages and recissions of unlawful derivative trades for the tens of thousands of Canadian Binance users who invested in its cryptocurrency derivatives products.,According to the Ontario Securities Commission (OSC), more than 50% of Canadian crypto owners have at least $5000 in the market, with the certified motion adding that “cryptocurrency derivatives traders include a great many retail investors.”,This class action comes just a few years after Binance
announced plans to cease operations
in Ontario, Canada after the OSC hit the firm with a warning following a regulatory crackdown.  ,Despite Binance’s
announcement to depart from Canada
in May 2023, the exchange is still on local authorities’ radar. “The OSC’s investigation into the defendants is ongoing,” the court motion reads. ,


This represents another blow to Binance’s efforts to
justify the company’s position as the leading cryptocurrency exchange in the wake of Changpeng Zhao’s damage to its image.,In November 2021, Zhao
pled guilty
to breaking criminal US anti-money laundering regulations, leading to his resignation as CEO and a $4 billion fine to Binance.,This latest lawsuit is another testament to Zhao’s legal ignorance, with the Canda security law violations occurring under his watch.,Since then his replacement,
current CEO Richard Teng, has demonstrated a proactive commitment to Binance’s future and restoring trust. This is evidenced by his recent efforts to
secure a headquarters for Binance
to aid in regulatory compliance.,Teng has also pushed the exchange forward by obtaining a
Dubai crypto license
, signaling a shift in the negative Binance narrative as a symbol of trust from a major jurisdiction.,However, these efforts are constantly overshadowed by Binances shaky past when it comes to regulation.,Binance Lawsuit Leaves The Exchnage’s Reputation in Question Again