OSC alleges multiple breaches of securities law by offshore crypto asset trading platform

For Immediate Release OSC Enforcement

TORONTO – The Ontario Securities Commission (OSC) announced today it filed a Statement of Allegations against Manticore Labs OÜ and Manticore Labs Inc. (collectively, CoinField) for failing to comply with Ontario securities law.

The OSC alleges that, since at least 2018, CoinField operated an unregistered crypto asset trading platform and allowed Ontario residents to trade crypto asset products that are securities and derivatives.

The OSC also alleges that CoinField did not, and continues not to, have sufficient crypto assets in custody to satisfy investor withdrawal requests. It is further alleged that CoinField failed to honour withdrawal requests in a timely manner, if at all, while at the same time misleading investors and the OSC about the true reason for the delays.

As alleged, CoinField’s failure to honour withdrawal requests and failure to comply with the registration and prospectus requirements under Ontario securities law, has deprived investors of essential protections. CoinField’s alleged efforts to mislead investors and conceal material information further undermined public confidence in Ontario’s capital markets.

This enforcement action is part of the Canadian Securities Administrators’ ongoing, coordinated effort to ensure that crypto asset trading platforms comply with securities legislation in Canada. Regardless of the location of their operations, platforms that facilitate the buying and selling of crypto assets by Canadian investors must comply with applicable requirements under Canadian securities legislation.

The OSC acknowledges the assistance of the British Columbia Securities Commission in this investigation.

The OSC urges investors to always check the registration of any person or business trying to sell them an investment or give them investment advice. Before investing in crypto assets, investors should also consult the list of platforms that are registered with Canadian securities regulators.

The OSC also continues to add unregistered crypto asset trading platforms to its Investor Warning List.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at http://www.osc.ca.

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