Ontario's superior court has granted approval for a class action lawsuit against Binance, alleging the crypto exchange sold unregistered crypto derivative products and violated securities law.
Binance Faces Class Action Lawsuit Over Unregistered Derivative Sales
The lawsuit, initiated by Christopher Lochan and Jeremy Leeder, accuses Binance of selling crypto-derivative products to thousands of retail traders without registering with the Ontario Securities Commission, as mandated by law.
On April 19, the lawsuit received certification as a 'class action,' allowing it to represent a broad range of individuals without each person individually taking legal action.
Judge Morgan Validates Class Action Basis in Binance Lawsuit
Judge E.M. Morgan acknowledged that Lochan and Leeder represent a significant number of Canadian users who claim to have invested in cryptocurrency products sold by Binance illegally. The judge concluded that there is sufficient evidence to support common issues across the class.
Court Dismisses Binance's Defense, Emphasizes Lack of Supporting Contracts
The plaintiffs seek damages for the crypto trades conducted and the rescission of their contracts with Binance. Binance argued against rescission, claiming it was not directly involved in the transactions. However, the court dismissed this argument, highlighting Binance's inability to produce relevant contracts supporting its stance.
Judge Morgan emphasized the absence of contracts supporting Binance's position, suggesting that if Binance's assertion were accurate, it should have been able to provide at least one such contract.