AMF v. Gagnon: The First 'Ripple' In The CSA's Jurisdiction Over Crypto Assets

In Autorité Des Marchés Financiers (AMF) v. Alexandre Gagnon¹, the Quebec Financial Markets Administrative Tribunal (the Tribunal) adopted a narrow interpretation of "investment contract" when considering whether the activities of a crypto "finfluencer" constituted advising in securities and market manipulation. This landmark case adopts the reasoning of Securities Exchange Commission (SEC) vs. Ripple Labs, Inc., Bradley Garlinghouse and Christian A. Larsen², the first U.S. case to consider whether crypto assets traded in secondary markets could be classified as securities.

The AMF has appealed the decision to the Court of Quebec.

Background

In 2023, the AMF commenced an enforcement investigation of Alexandre Gagnon and his company, "Richie the Bull" (respondents). Richie the Bull offered two types of services: (1) management of crypto asset investments on behalf of clients on the Uniswap decentralized exchange (DEX); and (2) paid subscriptions to private