Decision in brief: Manticore Labs OÜ, Enforcement Proceeding, Sanctions and Costs, January 30, 2025

In an earlier decision, the Tribunal decided that Manticore Labs OÜ and Manticore Labs Inc. violated Ontario securities law by selling securities without being registered to do so, and without having filed a prospectus (a document that gives investors information about the investment) for those securities.

The Tribunal also decided that Manticore Labs OÜ and Manticore Labs Inc., who operated a crypto asset trading platform called CoinField, made false statements to CoinField users, and that they could be sanctioned for failing to keep investors’ assets safe and for failing to let investors take out their money.

In this decision, the Tribunal decided what sanctions and costs it should order. CoinField’s activity in Ontario capital markets was significant, and Manticore Labs OÜ and Manticore Labs Inc.’s misconduct was serious. They made false statements to Ontario investors and denied them important protections under Ontario securities law. Crypto trading platforms need a strong message that they must comply with Ontario securities law when dealing with Ontario investors.

The Tribunal decided that Manticore Labs OÜ and Manticore Labs Inc. should be permanently banned from participating in Ontario’s capital markets.

The Tribunal decided that Manticore Labs OÜ and Manticore Labs Inc. must jointly pay an administrative penalty of $2.4 million due to multiple violations of Ontario securities law. They must also jointly disgorge (give up to the Commission) $537,034.46, which are the losses suffered by twenty-six Ontario investors. Finally, they must jointly pay $89,538.30 in costs to the Commission.