Decision in brief: Phemex Limited, Enforcement Proceeding, Sanctions and Costs, June 13, 2025

In an earlier decision, the Tribunal decided that the respondents, who operated a crypto asset trading platform, broke 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.

In this decision, the Tribunal decided what sanctions and costs should be ordered against the respondents for their misconduct.

The respondents accepted that they should be permanently banned from participating in Ontario’s capital markets and disgorge (give up to the Commission) the fees they earned in connection with their misconduct (US$39,712.43). The Tribunal agreed these sanctions are in the public interest.

The respondents did not accept the administrative penalty ($500,000) or costs order ($134,975) requested by the Commission.

The Tribunal decided that an administrative penalty of $300,000 is in the public interest and recognizes the positive impact the respondents’ cooperation with the Commission had on this case.

The Tribunal decided that the costs requested by the Commission were reasonable and there was no reason to reduce them any more than the Commission already had.