Supreme Court to Rule on Canadian Jurisdiction Over Binance in Fraud Case
The Supreme Court of Canada will soon hear a case involving the Binance cryptocurrency exchange that could set a precedent for Canadian victims of crypto fraud. The case revolves around three Nigerian citizens accused of defrauding a Canadian out of approximately $65,000 worth of bitcoin. Investigators tracked the stolen cryptocurrency to accounts held by Nest Services Ltd., a Binance-affiliated entity based in the Seychelles. In 2025, an Ontario court granted orders to freeze and preserve these assets, but Binance entities challenged the ruling on jurisdictional grounds.
The Supreme Court's decision will determine whether Canadian courts can enforce legal actions against foreign-based crypto exchanges with a significant presence in Canada. Nest Services, for example, had 248,114 Canadian customers with about $35.8 million in their accounts at the time of the ruling. The case highlights the difficulties law enforcement faces when dealing with cross-border crypto fraud, as Canadian court orders may not hold weight in foreign jurisdictions.
Legal experts emphasize the importance of this case. Jeffrey Simser, a former director of civil forfeiture at Ontario’s Ministry of the Attorney-General, described it as a test of whether businesses operating in Canada can evade legal obligations by asserting their corporate structure and location. Tanya Walker, a Toronto-based fraud lawyer, noted that the outcome will significantly impact the ability of Canadian courts to preserve crypto assets linked to fraud, potentially affecting victims' chances of recovering their losses.