Supreme Court of Ontario in Canada approved class action against the Binance Holdings exchange and its affiliates. It states that the company violated the law by selling securities without a license.
According to the case file, the lawsuit was filed by Christopher Lochan and Jeremy Leader, along with a group of other victims. They are demanding damages and termination of certain transactions with crypto assets under the Securities Act.
By confirming the claim, the court actually designated the retail sale of crypto assets as the sale of securities and/or derivatives. In addition, the resolution states that their promotion is considered distribution.
Let us note that with its decision the court only “set the ball rolling” for this case. The timing of its consideration is unknown at the time of writing.
In March 2023, Binance pulled out of Canada amid tightening industry oversight. Despite this, the local regulator initiated an investigation into the company's activities, which as of April 2024 is still not completed.
Source: Cryptocurrency
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