Binance, the world’s biggest cryptocurrency exchange, has been targeted in a $1-billion proposed class-action lawsuit in Toronto, led by a high-profile firm accusing the platform of illegally offering certain complex trades.
A company spokeswoman, Carolina Matos, said in a statement: “Binance does not comment on active disputes or regulatory matters. Binance takes all allegations against it very seriously and will handle them through the judicial process.” Mr. Lochan did not disclose the details of his Binance trades. But he described such trades as potentially “perilous,” with the up to 125 times Binance allows people to borrow against their funds.
Binance has said it runs a clean shop and has been on a campaign of regulatory appeasement, after attracting scrutiny from regulators around the world bearing down on crypto companies. Citing unnamed sources, Bloomberg has reported that the U.S. Securities and Exchange Commission and U.S. Justice Department are separately probing the company.
In the meantime, Binance, which offers an array of coins and complicated trades, has remained available to Canadians outside Ontario. “Regulators have allowed companies to continue to operate until they were approved, as long as you are in good faith,” Mr. Truong said.
Source: Digital Coin News (digitalcoinnews.net)