Lochan v. Binance Holdings Limited

Facts

The Plaintiffs were customers of Binance Holdings Limited ("Binance"), who operates a cryptocurrency trading platform. The Plaintiffs previously brought a class action seeking relief under the Ontario Securities Act against Binance for having sold securities without filing a prospectus or obtaining an exemption.

Binance had sought to stay the class action on the basis that its customers' user agreement contained an arbitration agreement requiring all disputes to be resolved by arbitration seated in Hong Kong and administered by the Hong Kong International Arbitration Centre ("HKIAC"). The Ontario Superior Court, and the Court of Appeal, refused to grant the stay in favour of arbitration, finding that the arbitration agreement was void for being contrary to public policy and unconscionable. This was because its practical effect was to deny at least some of Binance's customers a realistically available forum to bring any claim due to the costs of bringing an