Pile of cryptocurrency coins
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An unregistered, offshore crypto platform has been fined and banned by Ontario’s Capital Markets Tribunal for breaching securities law.

Back in August 2024, the tribunal found that the Estonia-based firm Manticore Labs OÜ (operating as CoinField) violated securities law by engaging in unregistered trading, illegal distribution and misleading investors when it operated an unregistered crypto trading platform that began operations in 2018, and shut down in 2023.

When the platform ceased operations, investors lost money, as it did not meet all of its withdrawal requests, the regulatory hearing panel noted.

Now, the tribunal has handed down sanctions in the case, permanently banning CoinField, ordering a $2.4 million penalty, along with $537,034 in disgorgement and $89,538 in costs.

The company didn’t participate in the enforcement proceedings brought against it by the Ontario Securities Commission (OSC), which alleged that CoinField breached registration and prospectus requirements, and misled investors about the safety of their assets.

The tribunal said that sanctions were justified, in part to level the playing field for crypto platforms that have complied with emerging regulation for the sector.

“Other crypto asset trading platforms have sought to bring their operations into compliance with Ontario securities law. If we were to allow CoinField to escape the consequences of its misconduct without significant sanctions, it would create an unlevel playing field within Ontario’s capital markets,” the regulatory hearing panel noted in its decision — adding that CoinField’s violations harmed investors.

“Virtual trading platforms, wherever based, need a strong message that they must comply with Ontario securities law when dealing with Ontario investors. We agree with the commission’s argument that accepting appropriate regulatory supervision in Ontario will not put them at a competitive disadvantage, but rather represents the only acceptable path to access the Ontario capital markets,” it said.

The hearing panel noted that the total harm to investors remains uncertain. However, as of late 2022, the platform had at least 1,275 clients in Ontario, holding $2.5 million worth of assets — and that between 2022 and 2024, the OSC received dozens of complaints about the company from investors.

Without actual data on the amounts obtained by misconduct, the panel ordered the disgorgement requested by the OSC based on data from 26 investors, despite evidence that there were over 1,000 investors in Ontario.

“Ultimately, we agree that the serious misconduct in this case causing harm to investors warrants a disgorgement order,” the panel said. “Without reliable evidence regarding investments through the CoinField platform made by other Ontario investors, we are unable to make a larger finding of disgorgement.”