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Binance Faces Lawsuit in Canada for Selling Crypto Derivative Products Without Registration

Binance, the leading players in the cryptocurrency trading industry, has been hit with a class-action lawsuit in Canada. The Ontario Superior Court of Justice has given the green light to the lawsuit, which alleges that Binance violated securities laws by selling crypto derivative products to retail investors without proper registration [1].

The plaintiffs, represented by Christopher Lochan and Jeremy Leeder, argue that Binance’s actions were in violation of the Ontario Securities Act and federal law. They claim that Binance failed to register as required by securities law and neglected to file a prospectus for the derivative products it sold to Canadian investors [2].

The certification motion for the class-action lawsuit highlights the significant presence of retail investors in cryptocurrency derivatives trading in Canada. According to the Ontario Securities Commission (OSC), over 50% of Canadian crypto owners hold at least $5,000 worth of cryptocurrency [2]. This underscores the potential impact of the lawsuit on a large number of investors.

The plaintiffs seek damages and the rescission of the unlawful derivatives trades conducted on the Binance platform. They argue that Binance’s failure to comply with registration requirements and file a prospectus renders the sales illegal and voidable [2].

Regulators have previously classified crypto contracts as securities or derivatives, bringing the marketing of such contracts under securities law. This classification has led to increased scrutiny of platforms like Binance, which offer crypto derivative products to retail investors [2].

Binance’s history with Canadian investors has already attracted regulatory attention. Despite previous pledges to cease doing business with local investors in 2021 and agreements with the Ontario Securities Commission (OSC) in 2022, Binance is still under investigation for possible violations [2]. The outcome of this lawsuit could have significant implications for the cryptocurrency industry, particularly in terms of regulatory oversight and investor protection.

It is estimated that tens of thousands of Canadian users were affected by Binance’s alleged violations. The plaintiffs argue that Binance’s actions not only violated securities laws but also had a direct impact on retail investors who purchased the crypto derivative contracts from the platform starting on September 13, 2019 [3].

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Binance to Phase Out Deposits on BNB Beacon Chain (BEP2)

n a recent announcement, Binance stated that users are strongly encouraged to deposit their BEP2 B-tokens into their Binance accounts before the complete sunset of the BEP2 network in June 2024. By doing so, users will be able to withdraw their B-tokens via the native network or other networks supported by Binance.

BEP2 is a token standard on the Binance Chain, which is a blockchain developed by Binance. It allows users to create and issue their own tokens. However, as the BNB Chain team prepares for the sunset of the BEP2 network, Binance will gradually phase out support for deposits on the BNB Beacon Chain.

The decision to stop processing deposit requests for BEP2 tokens (excluding B-tokens) is part of Binance’s efforts to streamline its operations and focus on the development and support of other token standards, such as BEP20. BEP20 tokens are compatible with the Ethereum Virtual Machine (EVM) and have gained popularity within the decentralized finance (DeFi) ecosystem.

While deposits for all BEP2 tokens will be supported until May 15, 2024, users are advised to stay updated through Binance’s official announcements for any changes or additional details. Binance will continue to provide updates and support to ensure a smooth transition for users during this phase-out period.

It’s important for users to note that the sunset of the BEP2 network does not affect the trading or withdrawal of already deposited BEP2 tokens. Only deposits will be gradually phased out. Binance remains committed to providing a secure and efficient platform for cryptocurrency trading and will continue to explore innovative solutions to meet the evolving needs of its users.

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Binance Futures to Introduce USDC-Margined BOME, TIA, and MATIC Perpetual Contracts with Up to 75x Leverage

In an announcement made on the Binance Support Center, Binance Futures revealed that the BOMEUSDC Perpetual Contract will be launched on April 25, 2024, at 07:00 (UTC) with up to 50x leverage. Additionally, the TIAUSDC Perpetual Contract will be introduced at 07:15 (UTC) with the same leverage, followed by the MATICUSDC Perpetual Contract at 07:30 (UTC) with up to 75x leverage.

The underlying assets for these contracts are the BOOK OF MEME (BOME), Celestia (TIA), and Polygon (MATIC) cryptocurrencies, with settlement in USDC. The tick size for BOMEUSDC is 0.000001, for TIAUSDC it is 0.0001, and for MATICUSDC it is 0.0001.

Funding rates for these perpetual contracts will be capped at +2.0000% / -2.0000% for BOMEUSDC and TIAUSDC, and +0.4500% / -0.4500% for MATICUSDC. Funding fee settlements will occur every four hours for BOMEUSDC and TIAUSDC, and every eight hours for MATICUSDC.

Traders can enjoy trading these perpetual contracts 24/7, and the Multi-Assets Mode is supported, allowing users to trade across multiple margin assets, subject to applicable haircuts. Binance has also announced that starting from April 3, 2024, users will benefit from zero maker fees and a 0.017% taker fee for all trades on USDC-margined futures contracts.

It’s important to note that Binance may adjust the specifications of these futures contracts, including funding fees, tick size, maximum leverage, initial margin, and maintenance margin requirements, based on market risk conditions. Traders are advised to refer to the Binance Terms of Use and the Binance Futures Service Agreement for more information on the perpetual contracts.

With this new offering, Binance continues to expand its range of trading options, providing users with increased flexibility and opportunities to trade various cryptocurrencies with leverage. Traders can access the Binance Futures platform via the Binance website or the Binance mobile app.

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BounceBit (BB) Megadrop Now Open: Participate by Subscribing to BNB Locked Products or Completing Web3 Quests

Cryptocurrency enthusiasts can now participate in the highly anticipated BounceBit (BB) Megadrop, an event organized by Binance, one of the leading cryptocurrency exchanges. This unique opportunity allows users to engage in the Megadrop by subscribing to BNB Locked Products or completing Web3 Quests.

Starting from April 26, 2024, at 00:00:00 UTC, participants can take part in the BounceBit Megadrop until May 12, 2024, at 23:59:59 UTC. By locking their BNB in BNB Locked Products, users increase their chances of earning attractive rewards. Regular snapshots of the subscription amounts will be taken, and the Locked BNB Scores will be calculated based on these snapshots.

To further enhance the excitement, participants can also choose to complete engaging Web3 Quests to earn additional rewards. The first Web3 Quest, titled “Stake 0.0001 BTCB to BounceBit” (Tutorial), will be available from May 13, 2024, at 06:00:00 UTC.

Binance is set to list the BounceBit (BB) token on May 13, 2024, at 10:00:00 UTC. Traders will have access to various trading pairs, including BB/BTC, BB/USDT, BB/BNB, BB/FDUSD, and BB/TRY. It’s important to note that the token will carry a Seed Tag.

The BounceBit Megadrop boasts a total token reward of 168,000,000 BB, representing 8% of the maximum token supply of 2,100,000,000 BB. The initial circulating supply upon listing will be 409,500,000 BB, accounting for 19.5% of the maximum token supply.

The rewards calculation is based on a user’s Total Score, which is determined by multiplying the Locked BNB Score by the Web3 Quest Multiplier and adding the Web3 Quest Bonus. The Locked BNB Score is influenced by the average locked BNB amounts for different durations, ranging from 30 to 120 days. The Web3 Quest Multiplier is set at 1.5, and there is a Web3 Quest Bonus of 1,000.

To participate in the BounceBit Megadrop, individuals must log into their Binance accounts and either subscribe to BNB Locked Products or complete the designated Web3 Quest(s) through the Megadrop feature on the Binance App. It is essential to have an active Binance Web3 Wallet to successfully complete the quests.

Once the Quest Period ends, participants can view their Megadrop rewards in their Binance Spot Wallet. It’s important to note that external wallets imported to the Binance Web3 Wallet will not be counted for the Megadrop. Only wallets created within the Binance Web3 Wallet are eligible for participation.

For more detailed information on BNB Locked Products, including APRs and subscription limits, interested individuals can refer to the Binance website. Additionally, the BounceBit (BB) Project Links, such as the website and whitepaper, provide further insights into the project.

Participants should be aware that joining the BounceBit (BB) Megadrop may require completion of identity verification in eligible jurisdictions, and some features of the Megadrop may be subject to regional restrictions.

Don’t miss out on the thrilling opportunity to take part in the BounceBit (BB) Megadrop on Binance. Whether through subscribing to BNB Locked Products or completing Web3 Quests, participants can earn attractive rewards and be part of this innovative crypto event.

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Binance Announces System Upgrade for Improved Performance and Stability

Binance, the popular cryptocurrency exchange, has recently announced a scheduled system upgrade to improve the overall performance and stability of its platform. The upgrade is set to take place on April 23, 2024, from 06:30 (UTC) to 09:30 (UTC).

According to the announcement posted on the Binance Support website, the system upgrade aims to enhance the user experience by addressing any existing performance issues and ensuring a more stable trading environment. During the upgrade, users may encounter system errors while accessing the Binance website or using the Binance App.

Impacted services during the upgrade period include new user registrations, user logins, and trading services. Binance advises users to be prepared for temporary disruptions and inconvenience during this time. However, the exchange assures its users that all funds will remain secure throughout the upgrade process.

It’s important to note that the duration of the system upgrade is an estimate and may vary. Once the upgrade is complete, all impacted services will resume without any further announcement from Binance. Users are advised to refer to the original announcement on the Binance Support website for the latest and most accurate information.

Binance acknowledges that there may be discrepancies in the translated versions of the announcement and advises users to refer to the original English version for the most up-to-date information.

As always, Binance reminds users that digital asset prices are subject to high market risk and volatility. The value of investments can fluctuate, and there is a possibility of losing the invested amount. It is crucial for users to carefully consider their investment decisions and seek advice from a financial advisor if needed.

In conclusion, Binance’s system upgrade is a proactive measure to enhance the performance and stability of its platform. Users should be prepared for temporary disruptions during the upgrade period but can rest assured that their funds will remain secure. Binance continues to prioritize the user experience and strives to provide a reliable and efficient trading environment for cryptocurrency enthusiasts.

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Ethena (ENA) Labs Integrates with Major Exchanges for Reward Program

Recently, Ethena Labs, a company that specialises in the development of synthetic dollars, made an announcement on its integration with major centralised exchange wallets such as Binance, Bybit, OKX, and Bitget. The purpose of this integration is to make it easier for users to participate in Ethena’s rewards programme and to increase the platform’s popularity among members of the decentralised finance (DeFi) community.

Ethena Labs is providing a reward increase of twenty percent to customers that lock their USDe stablecoins for a period of seven days or more using exchange Web3 wallets. This is done as an incentive for users. At the conclusion of each campaign, these incentives, which are referred to as “Ethena sats,” have the potential to be turned into the native ENA token of the system. Through the integration of well-known exchange wallets, Ethena Labs intends to simplify the process by which users may take part in the rewards programme and gain extra advantages.

In the present moment, the Ethena DeFi protocol has a total value locked (TVL) of $2.274 billion, which results in an annualised income of $178 million. Since the start of Ethena Staking Season 2, the incentives that are offered by the protocol’s ecosystem have garnered a large amount of interest and applications. Lookingonchain, a company that specialises in blockchain analytics, reports that the top 10 wallets have staked 37.5 million ENA, which is equivalent to 51 million United States dollars.

Shortly after its inception, Ethena’s USDe stablecoin has swiftly become the fifth-largest stablecoin in the market. This is a testament to the rapid growth of the USDe stablecoin. In the beginning, the system provided a high annual percentage yield (APY) of 67%; however, at the present time, it offers an APY of 24% on stablecoins. Concerns have been expressed, however, about the mechanism’s potential to continue operating in the long term. Guy Young, the inventor of Ethena, has addressed these issues by underlining the fact that the yields of the protocol are organic and sustainable. These yields are obtained from a variety of sources, including Ethereum incentives, execution fees, and trading profits.

Ethena’s popularity and use within the DeFi community are anticipated to increase even more as a result of its integration with big centralised exchange wallets. Ethena Labs’s goal is to raise the total value locked in the protocol by increasing the number of users who participate in the rewards programme by making the process of participating in the programme easier.

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Binance Executive Nadeem Arjarwalla Traced to Kenya After Escape from Nigerian Custody

Nadeem Arjarwalla, a senior official of Binance, escaped from detention in Nigeria, and the Nigerian authorities was able to track him down in Kenya . Arjarwalla is charged with participating in operations that caused major disruptions in the Nigerian naira exchange rate market .

Arjarwalla’s cover was exposed after he arrived in Kenya, and the Nigerian government moved quickly to arrange for his extradition so he could face the accusations made against him. To speed up the extradition procedure, the Nigeria Police Force, the Kenyan Police Service, the International Criminal Police Organisation (Interpol), and the Economic and Financial Crimes Commission (EFCC) are collaborating.The Nigerian government’s cooperation with foreign law enforcement agencies, as well as the governments of the United States, the United Kingdom, and Kenya, is indicative of their resolve to repatriate Arjarwalla to Nigeria. Ola Olukoyede, the chairman of the EFCC, said that the agency is collaborating closely with these organisations to guarantee Arjarwalla’s smooth extradition. Concerns about the security protocols in place have been highlighted by Arjarwalla’s escape from prison in Nigeria. The troops tasked with keeping an eye on Arjarwalla have been taken into custody by the Nigerian government, which is also carrying out extensive inquiries into the situation. The continuing investigations are being conducted by special investigators from a variety of security and intelligence organisations, including the National Intelligence Agency, the Department of State Services, the Police, the EFCC, and the military. Arjarwalla and Binance Holdings Limited face accusations of tax evasion, currency speculation, and money laundering, with an estimated $35.4 million in total at stake. The Office of the National Security Adviser has handed over case management to the Nigerian government, and Tigran Gambaryan, Arjarwalla’s partner, is being held by the EFCC. Arjarwalla, Binance, and Gambaryan will all be charged in absentia, according to sources with direct knowledge of the case. In addition, Binance Holdings Limited, Arjarwalla, and Gambaryan have been charged by the Nigerian government for their failure to register with the Federal Inland Revenue Service and pay applicable taxes. The Nigerian government’s campaign against individuals accused of financing terrorism and money laundering includes the extradition procedure as a key measure. The government’s commitment to fighting financial crimes and protecting the integrity of Nigeria’s financial system is shown by its cooperation with foreign law enforcement authorities and its will to bring Arjarwalla back to his home country.

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Binance Launches Megadrop: A Token Launch Platform with Airdrops and Web3 Quests

Binance, the largest cryptocurrency exchange, has recently announced the launch of Binance Megadrop, a new token launch platform that offers a unique combination of airdrops and Web3 quests. This platform allows users to subscribe BNB to Locked Products and complete tasks in their Web3 Wallet to gain early access to rewards from selected Web3 projects before their tokens are listed on the Binance Exchange.

The first project to be introduced on Binance Megadrop is BounceBit (BB), a BTC restaking chain. The token details for BounceBit are as follows: Max Token Supply: 2,100,000,000 BB, Megadrop Token Rewards: 168,000,000 BB (8% of max token supply), Initial Circulating Supply: 409,500,000 BB (19.5% of max token supply).

To get started with Binance Megadrop, users need to log into their Binance account and ensure they have at least one active Binance Web3 Wallet. They can then subscribe to BNB Locked Products and/or complete Web3 Quests to accrue scores. These scores will determine the rewards received through the Megadrop program.

The scoring system for Megadrop is based on the Locked BNB Score, which is calculated based on the quantity of BNB subscribed and the length of the subscription period. Users will also receive a Web3 Quest Bonus and a Web3 Quest Multiplier when they complete the designated Web3 Quests. The total score is calculated by applying the Web3 Quest Multiplier to the Locked BNB Score and adding the Web3 Quest Bonus.

It is important to note that external wallets imported to the Binance Web3 Wallet will not count, and only backed-up wallets created within the Binance Web3 Wallet can participate in Megadrop. The Megadrop rewards will be airdropped to users’ Binance Spot Wallets.

It is crucial for users to complete identity verification and hold at least one active Binance Web3 Wallet to qualify for Megadrop rewards. Additionally, there are certain eligibility criteria for participants based on their jurisdiction. Users from Australia, Canada, Cuba, Crimea Region, Hong Kong, Iran, Japan, New Zealand, Netherlands, North Korea, Russia, Singapore, Syria, United Kingdom, United States of America, and its territories are currently not eligible to participate in BB Megadrop.

Binance Megadrop aims to provide users with an interactive and rewarding experience within the crypto ecosystem. More details regarding the Megadrop amount, Web3 Quests, and the detailed listing plan will be announced separately.

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Binance Adds APT/USDC, GALA/USDC, NEO/USDC, OMNI/BRL, and STX/USDC Trading Pairs

Binance, a leading cryptocurrency exchange, has unveiled its latest update, which introduces new trading pairs and the availability of Trading Bots services on the Binance Spot platform. This move is in line with Binance’s commitment to delivering an exceptional trading experience to its users and expanding their trading options.

Effective from April 19, 2024, Binance Spot users will have access to a selection of new trading pairs. The newly added pairs include APT/USDC, GALA/USDC, NEO/USDC, OMNI/BRL, and STX/USDC. By offering these additional trading pairs, Binance aims to provide users with more opportunities to diversify their cryptocurrency portfolios and engage in a wider range of trading activities.

One of the notable features introduced alongside the new trading pairs is the Trading Bots services. Trading Bots allow users to automate their trading strategies, enabling them to execute trades based on predefined algorithms. This feature is designed to facilitate faster and more efficient trading, saving users valuable time and effort.

However, it’s important to note that eligibility to trade these new pairs is subject to certain restrictions based on the user’s country or region of residence. Binance has identified a list of countries that are currently restricted from trading the new pairs. These countries include Canada, Cuba, Crimea Region, Iran, Netherlands, North Korea, Syria, the United States of America, and its territories (American Samoa, Guam, Puerto Rico, the Northern Mariana Islands, the U.S. Virgin Islands), as well as any non-government controlled areas of Ukraine. Binance reserves the right to update this list in accordance with relevant laws and regulations.

To gain access to the new trading pairs and utilize the Trading Bots services, Binance Spot users are required to complete the account verification process. This verification procedure ensures compliance with regulatory requirements and contributes to maintaining the security and integrity of the platform.

Binance remains committed to enhancing users’ trading experiences by continuously introducing new features and expanding its services. In addition to the new trading pairs and Trading Bots, Binance offers a range of other services such as margin trading, peer-to-peer trading, options trading, and more. Users can also benefit from educational resources provided by Binance Academy, stay informed through the blog and research section, and explore various opportunities within the cryptocurrency industry.

Please note that the value of digital assets is subject to high market risk and volatility. Users are advised to exercise caution and seek professional advice before making any investment decisions. Binance cannot be held responsible for any losses incurred by users.

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Reasons Behind the Success of the Binance Coin

The native coin of the world’s largest crypto-exchange has returned to its previous historical maximum, while others remain 80-90% lower. The BNB token quickly rose and holds the seventh line in the ranking of cryptocurrencies in terms of market capitalization.

Although no one knows for sure why Binance Coin performed so well, there are several factors that have definitely had a positive effect.

Binance burns BNB tokens every quarter

Each quarter, Binance burns 20% of BNB, which the exchange collects in the form of commissions from the platform. This removes them from circulation forever. Binance will continue to burn Binance Coins until the 100 million coins threshold has been reached.

Token burning, as a rule, has a certain effect on the coin. With a decrease in circulating supply, the balance of supply and demand shifts. Supply is reduced and maintains constant demand, pushing prices higher.

Burning coins also have a positive psychological effect on the market. However, in a rational world, this effect is minimal. The exchange withdraws from circulation only 1-2% of the Binance Coin issue, but the price does not show a larger increase immediately after burning. To feel the real changes in the rational world, it would take more time and changes in proposals on a much larger scale.

BNB now has actual utility

Binance Coin technically already had some utility before. With a token, you can pay for a cryptocurrency transaction and a Binance commission to get a discount, as well as earn rewards on several different platforms. However, in the above functions, the Binance Coin coin is not unique.

The actual usefulness of Binance Coin appeared with the launch of the Binance Chain and will continue with the subsequent launch of the corresponding decentralized exchange (DEX). Binance Chain was launched on Apr. 18. On Apr. 23, the Binance team switched BNB from the ERC20 token to its own token in the new chain.

Then Binance Coin will be used “as payment for every transfer that goes online.” Judging by the current volume of Binance, this change should lead to a significant increase in demand for BNB.

But why now?

The announcement of the Binance Chain is not new. The company announced its plans in March 2018. But now the team has produced something tangible. By the end of February this year, they launched the Binance Chain test network. After the news about the launch of testnet, and then mainnet, the price of BNB rose a couple of times well.

Binance price spikes after releases

Binance’s reputation is ahead of itself. Perhaps the most influential (but difficult to measure) factor is Binance’s stellar reputation in the crypto community. Since speculation is considered a healthy part of investing in cryptocurrency, sometimes unrelated determinants can change the price of a token.

Binance is often the first step investors take to altcoins. Therefore, it is logical that Binance Coin will be one of the first altcoins that investors will want to purchase.

Changpeng Zhao (CZ), CEO of Binance, is a famous figure in the crypto space with a large number of followers on Twitter. Many praise him as an example of how to properly manage cryptocurrency exchanges. Many think that Changpeng Zhao might be more generous. In any case, only one of his presence continues to attract attention to the platform’s native coin.

The more investors learn about the token, the more chances it has to grow in the right direction. Finally, many years of positive experience using the Binance platform brings confidence to the BNB base token. Most people have only very minor comments about the operation of the exchange.

The Future of Binance Coin

There are many risks in investing in BNB, because in Binance Coin there is still not enough real usefulness. The coin does not provide opportunities for use in smart contracts, therefore, Binance-based DApp applications are practically not used.

Added to this is the weak security potential of the coin. The company behind the exchange has already faced some regulatory problems, which forced it to move to another country. Future legal problems can cause a sharp drop in prices if they are serious enough.

As with any investment, especially cryptocurrency, it is important to conduct your own research and keep track of any new finds. Although Binance Coin seems like a delicious investment opportunity today, anything can happen tomorrow.

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