Supreme Court of Canada to Hear Binance Appeal Over Frozen Crypto Assets in Fraud Case
The Supreme Court of Canada has agreed to hear an appeal by Binance entities challenging a 2025 Ontario Superior Court decision that froze cryptocurrency linked to an alleged $65,000 bitcoin fraud. The case centers on whether Canadian courts have jurisdiction over foreign crypto exchanges with a 'virtual presence' in the country.
The Supreme Court of Canada has agreed to hear an appeal brought by Binance entities against a 2025 decision by the Ontario Superior Court of Justice that froze cryptocurrency assets connected to an alleged fraud case.
The underlying dispute involves three Nigerian citizens who allegedly defrauded a Canadian of approximately $65,000 worth of bitcoin. Investigators traced the stolen cryptocurrency to three accounts held by Nest Services Ltd., a Seychelles-headquartered company that is one of several corporate entities making up the Binance platform.
In 2025, the Ontario Superior Court of Justice granted orders sought by the province’s Attorney-General to freeze and preserve the crypto assets. The court ruled it had jurisdiction because Nest Services maintained sufficient customers, holdings, and transactions in Canada to be deemed as having a "virtual presence." Although Nest Services no longer wished to do business in Canada, it still had approximately 248,114 Canadian customers with about $35,815,317 in their accounts at the time.
Legal experts say the Supreme Court's ruling will determine whether Canadian courts have jurisdiction over foreign cryptocurrency exchanges operating with a virtual presence in the country, carrying significant implications for victims of cross-border cryptocurrency fraud seeking asset preservation. Law enforcement continues to face challenges seizing stolen cryptocurrency when exchanges are headquartered outside the country.
Jeffrey Simser, a lawyer and asset-forfeiture expert, stated the Supreme Court’s ruling will be "immensely important" for testing if businesses can evade Canadian legal obligations via corporate structure. Tanya Walker, a Toronto-based lawyer, noted that the appeal raises questions about how far Canadian courts can reach to preserve cryptocurrency connected to alleged fraud.
The case unfolds amid broader concerns over financial crime. Fraud victims reported $351 million in losses to the Canadian Anti-Fraud Centre in the first six months of this year. The centre estimates that only 5 per cent to 10 per cent of frauds are reported.