Binance is Sued in Canada For Violating Securities Laws

A new class-action lawsuit has been filed against popular cryptocurrency exchange Binance in Canada, alleging that the exchange has violated local securities laws.

Court documents from Ontario’s Superior Court of Justice reveal that Binance is being accused of selling crypto derivative products to retail investors without proper registration.

The plaintiffs, represented by lawyers Christopher Lochan and Jeremy Leeder, claim that Binance has contravened the Ontario Securities Act and federal law by offering these products.

The lawsuit seeks damages and also requests the cancellation of any illegal derivative trades. The plaintiffs estimate that tens of thousands of Canadian users have invested in Binance’s cryptocurrency derivative products.

The court motion notes that a large number of these investors are retail traders, as more than 50% of Canadian cryptocurrency owners have invested at least $5,000 in the market, according to data from the Ontario Securities Commission (OSC).