The Ontario Securities Commission appealed the acquittal of Stephan Katmarian on four counts of securities violations related to the promotion of Peblik Inc., a cryptocurrency token purportedly backed by the Thierry Mine.
The trial judge acquitted Katmarian on all counts.
On appeal, the Superior Court allowed the appeal on Count 1 (fraud), finding the trial judge erred in law regarding the element of deprivation by requiring proof of detrimental reliance rather than risk of deprivation.
The Court dismissed the appeals on Counts 2 (misleading statements to the Commission), 3 (unregistered trading in securities), and 4 (distribution without prospectus).
The Court entered a conviction on Count 1 and remanded for sentencing.
