Ontario Superior Court Approves Class Action Lawsuit Against Binance for Selling Unregistered Crypto Derivative Products
The Ontario Superior Court has given the green light to a class action lawsuit against Binance, a major crypto exchange, for allegedly selling unregistered crypto derivative products and violating securities law. The lawsuit, filed by Christopher Lochan and Jeremy Leeder, accuses Binance of selling these products to thousands of retail traders without registering with the Ontario Securities Commission as required by law.
The lawsuit, which received certification on April 19 to proceed as a class action, represents a wide range of individuals without each person having to take legal action individually. Judge E.M. Morgan acknowledged that Lochan and Leeder claim to be among the many Canadian users who invested in cryptocurrency products on Binance’s platform and believe these products were sold illegally.
The plaintiffs are seeking damages for the crypto trades they made and are requesting the rescission of their contract with Binance. Binance argued that it was merely a third party to these transactions and therefore rescission was not appropriate. However, the court rejected this argument, stating that Binance failed to provide any relevant contracts to support its claim.
The Judge pointed out, “One would think that if it is the defendants’ view that Binance website users contract with each other and that Binance is only a medium for these contracts, then they could produce at least one such contract.” This ruling sets the stage for a potentially significant legal battle between Binance and the plaintiffs in the class action lawsuit.
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