Cryptocurrency Exchange Binance Faces Legal Battles in Canada, Philippines, and the United States
Cryptocurrency exchange Binance is facing a new legal battle as a class-action lawsuit unfolds in Canada, alleging violations of securities regulations. The Ontario Superior Court of Justice has initiated a certification motion for the lawsuit, which accuses Binance of selling crypto derivative products to retail investors without proper registration.
The plaintiffs are seeking damages and the rescission of illicit derivative trades, claiming that tens of thousands of Canadian users participated in Binance’s cryptocurrency derivatives offerings. In a related development, the Philippines SEC has directed Google and Apple to remove the Binance app from their app stores for users in the Philippines, citing violations of securities regulations.
In the United States, prosecutors have recommended a 36-month prison sentence for Binance founder Changpeng “CZ” Zhao after he pleaded guilty to charges related to money laundering. The prosecutors argue that the proposed sentence and a $50 million fine are necessary to address Zhao’s deliberate violation of U.S. law.
These legal challenges highlight the growing scrutiny faced by cryptocurrency exchanges like Binance and the importance of complying with regulations in various jurisdictions. Stay tuned for updates on this developing story.
