Alvin Qian

The appellants appealed a Capital Markets Tribunal decision finding they committed securities fraud by selling cryptocurrency tokens falsely represented as backed by gold bullion and misappropriating investor funds.

On appeal, they argued the Tribunal erred by admitting compelled interview transcripts, finding the tokens were securities, denying an adjournment, and imposing unfit sanctions.

The Divisional Court dismissed the appeal, holding that compelled testimony is admissible in the same regulatory proceeding, the tokens met the test for an investment contract, and the Tribunal's factual findings and sanctions were reasonable and entitled to deference.

The appellant, a former chairman of a publicly traded cannabis company, appealed decisions of the Capital Markets Tribunal finding he breached the prohibition against tipping material non-public information under s. 76(2) of the Securities Act and imposing sanctions.

The appellant had shared draft transaction documents with a personal friend and business colleague.

The Divisional Court upheld the Tribunal's findings that the appellant bore the onus of proving the disclosure was in the 'necessary course of business' (NCOB), that the NCOB test is purely objective, and that the disclosure was not necessary.

The Court also dismissed the appellant's argument that an objective NCOB test unjustifiably infringed his freedom of expression under s. 2(b) of the Charter, finding any infringement was justified under s. 1.

The appeal against the merits and sanctions decisions was dismissed.