Binance Sued in Canada, BTC No Longer 'Cheap' Says Fidelity, and SEC Lawyers Resign Amid Crypto Case
Summary:
Binance faces a new class-action lawsuit in Canada, accusing it of breaching securities laws. Financial services provider Fidelity states Bitcoin can no longer be regarded as inexpensive, changing its medium-term outlook on the cryptocurrency from positive to neutral. Meanwhile, two SEC lawyers resigned amid claims of misconduct and misrepresentation in a case linked to a cryptocurrency platform, DEBT Box.
Faced with allegations of infringing on securities regulations, Binance, a prominent cryptocurrency exchange, is now a defendant in a class-action court case in Canada. Fidelity Digital Assets analysts argue that Bitcoin now falls into the category of high-priced assets. Cryptocurrency news is also buzzing with information about the departure of two lawyers from the Securities Exchange Commission (SEC) due to perceived oversight errors in a cryptocurrency-related legal matter.
In Canada, Binance is under fire from a group of plaintiffs who insist the company has been violating securities laws. A statement from the Superior Court of Justice in Ontario dated April 19 validates a class-action lawsuit against Binance. In the lawsuit, the firm stands accused of illegally offering cryptocurrency derivative products to everyday investors without proper registration. The plaintiffs, guided by attorneys Christopher Lochan and Jeremy Leeder, argue that Binance's actions are a breach of both the Ontario Securities Act (OSA) and federal legislation.
This class-action lawsuit emerges not long after Binance's decision in June 2021 to close operations in Ontario. This move was a response to a warning from the OSC.
Fidelity, a titan of financial services, now contends that Bitcoin's (BTC) days as a bargain asset are numbered. The firm pointed to multiple indexes when explaining its shift from a positive to a neutral medium-term perspective on Bitcoin. A research report from Fidelity Digital Assets from April 22 names the ‘Bitcoin Yardstick’ as the metric that suggests Bitcoin has reached a "fair value" trading point.
Among the reasons behind Fidelity's adjustment in Bitcoin outlook is the growing selling pressure exercised by long-time BTC holders. The report also highlights the fact that 99% of BTC addresses are currently profitable, potentially enticing more selling in future. Despite adopting a more neutral stance overall, Fidelity maintains its positive short-term outlook for Bitcoin, noting potential "short-term profit taking" towards the end of Q1, but refuting any extremely indiscreet indicators typical of bull market peaks.
Within the SEC, two lawyers, Michael Welsh and Joseph Watkins, have reportedly stepped down following a district court's scolding of the regulatory body for misconduct in a case involving cryptocurrency platform DEBT Box. The short term roles both lawyers held at the SEC saw Welsh taking up a trial attorney position since December 2022, and Watkins stepping into an enforcement division attorney role from January 2022. Their resignation follows Chief Judge Robert K. Shelby's admonition of the SEC for its dishonesty and misrepresentation in the DEBT Box case. In a filing dated March 18, Judge Shelby criticized the SEC's conduct as a severe abuse of the power bestowed by Congress, greatly detrimental to the integrity of the legal proceedings and the judiciary process.
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Contributors to this report are Geraint Price, Sam Bourgi, and Felix Ng.
Published At
4/23/2024 3:48:33 PM
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