Recently, Changpeng Zhao accepted charges and US prosecutors have requested a 36-month prison sentence. Additionally, the cryptocurrency exchange Binance continues to face legal pressures in Canada and the Philippines.
Binance and the Canadian Uncertainty
Binance, the largest exchange by volume, appears to be facing a new class action lawsuit in Canada, with plaintiffs alleging that the firm violated local securities laws.
The Ontario Superior Court of Justice has issued a certification request for a class action alleging that Binance sold crypto derivative products to individual investors without registration, drawing significant attention.
The lawsuit includes demands for compensation and the cancellation of illegal derivative transactions. Plaintiffs also revealed that Binance’s website had tens of thousands of Canadian users currently invested in cryptocurrency derivative products.
The Securities and Exchange Commission (SEC) of the Philippines has issued an order to both Google and Apple to remove the Binance app from their app stores for users in the Philippines.
Emilio Aquino, chairman of the Philippines SEC, stated that selling or offering unregistered securities to Filipino citizens and operating as an “unregistered broker” are outside the country’s securities regulations.
Commenting on the move to remove Binance apps from digital marketplaces, the chairman noted that this action is aimed at preventing the further spread of illegal activities in the country, which could otherwise harm the local economy.
US Moves Against CZ
Meanwhile, US prosecutors have stated that Binance founder Changpeng “CZ” Zhao should serve 36 months in prison for violating anti-money laundering laws.
Prosecutors submitted to the Western District Court of Washington, stating:
Considering the magnitude and consequences of Zhao’s intentional violation of US laws, a sentence above the 36-month guideline is warranted. This sentence, along with the agreed-upon $50 million fine, is sufficient to balance the relevant 18 U.S.C. § 3553(a) factors and achieve the purposes of the punishment without being excessive.
While these legal issues unfold for Binance, attention has also turned to Binance’s local token, BNB, which is trading in the $589 region after a 2.41% drop in the last 24 hours.
