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Cryptocurrency exchange Binance finds itself entangled in a fresh legal battle as a new class-action lawsuit unfolds in Canada. Plaintiffs allege that Binance has run afoul of local securities regulations.
The Ontario Superior Court of Justice has initiated a certification motion for a class-action lawsuit against Binance. The core accusation revolves around the sale of crypto derivative products to retail investors without proper registration, according to the plaintiffs.
The lawsuit is seeking damages and the rescission of illicit derivative trades. Plaintiffs argue that tens of thousands of Canadian users engaged in Binance’s cryptocurrency derivatives offerings through its platform.
Further complicating matters, the Philippines Securities and Exchange Commission (SEC) has directed both Google and Apple to remove the Binance app from their respective app stores for users in the Philippines.
Emilio Aquino, chair of the SEC, emphasized that selling or offering unregistered securities to locals and operating as an unregistered broker breaches the country’s securities regulations. Removing Binance’s applications from digital app marketplaces, according to Aquino, is crucial to curb the proliferation of its illicit activities in the Philippines, which could otherwise have detrimental effects on the local economy.
Meanwhile, in the United States, prosecutors have recommended a 36-month prison sentence for Binance founder Changpeng “CZ” Zhao. This recommendation comes after Zhao pleaded guilty to charges related to money laundering.
In their filing to the U.S. District Court for the Western District of Washington, prosecutors underscored the gravity of Zhao’s deliberate violation of U.S. law and its repercussions. They argue that the proposed 36-month sentence, coupled with a $50 million fine, strikes an appropriate balance in addressing the pertinent legal factors and achieving the objectives of sentencing.
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