Canada Files Lawsuit Against Binance for Suspected Securities Infractions

Plaintiffs in Canada have filed a class-action lawsuit against cryptocurrency exchange Binance, alleging that the platform violated Canadian securities regulations. The lawsuit, which was recently certified by Ontario’s Superior Court of Justice, claims that Binance offered crypto derivative products to retail investors without proper registration. The plaintiffs, represented by Christopher Lochan and Jeremy Leeder, argue that Binance’s promotion of these products breached federal law and the Ontario Securities Act. The legal action seeks to recover damages and put an end to the illicit trading of derivatives. According to the plaintiffs, tens of thousands of Canadians used Binance’s website to purchase crypto derivatives. The Ontario Securities Commission has reported that over half of Canada’s cryptocurrency owners possess at least $5,000 worth of digital assets, and the certification motion states that many of these investors are involved in crypto derivatives trading. Binance holds a significant market share in the cryptocurrency industry, accounting for 58% of spot trading volumes among centralized exchanges as of March 2024. The exchange not only operates as a leading spot trading platform but also runs the largest derivatives market compared to competitors like Bybit and OKX. Data from Bybit suggests that Binance, OKX, and Bybit dominate the derivatives market for centralized exchanges. Binance has faced previous class-action lawsuits, and in June 2021, it announced its decision to cease operations in Ontario following a warning from the Ontario Securities Commission.