Ontario’s superior court has granted approval for a class action lawsuit against Binance, alleging the sale of unregistered crypto derivative products and violations of securities law.
Christopher Lochan and Jeremy Leeder initiated the lawsuit, asserting that Binance offered crypto-derivative products to numerous retail traders without registering with the Ontario Securities Commission, as mandated by law.
This significant legal development, reported by Advisor.ca, marks the certification of motion on April 19, enabling the lawsuit to progress as a class action, representing a broad spectrum of individuals without each party needing to pursue legal action individually. Judge E.M. Morgan acknowledged Lochan and Leeder’s assertion, highlighting their claim to be among the multitude of Canadian Binance users who invested in cryptocurrency products allegedly sold illegally by the defendants.
In approving the lawsuit, the judge emphasized that the plaintiffs had established a factual basis demonstrating commonality across the class regarding the liability issues.
The plaintiffs seek damages for crypto trades and the rescission of their contracts with Binance. Despite Binance’s argument that rescission was inappropriate as it positioned itself as a third party to these transactions, the court dismissed this stance, noting the lack of supporting contracts to substantiate Binance’s claim.