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Wealthsimple, Shakepay crypto class action lawsuit overview:
- Who: Shay Abicidan claims crypto trading platforms Wealthsimple and Shakepay charged their customers millions of dollars in hidden fees.
- Why: Abicidan says the companies bait consumers into using their service to trade crypto by misleadingly advertising that they offer commission-free trading.
- Where: The class action was filed in Canada.
Crypto trading platforms Wealthsimple and Shakepay collectively charged investors millions of dollars in hidden fees, despite advertising commission-free crypto trading, a new class action lawsuit alleges.
The complaint, which seeks $10 million from each company, alleges Wealthsimple and Shakepay fail to disclose the true cost of using their platforms to trade crypto, The Globe and Mail reports.
Plaintiff Shay Abicidan, who lives in Montreal and says he has invested with both platforms, claims the crypto trading platforms mislead consumers and bait them into using their services by using terms such as “zero fee commissions” or “commission free” in their marketing.
Shakepay and Wealthsimple both deny the allegations in the yet-to-be-certified class action lawsuit, The Globe and Mail reports.
Crypto class action alleges Wealthsimple charges ‘operations fee’ on crypto trades
Abicidan argues that, while Wealthsimple does not technically charge a commission fee to make a trade, it charges an inflated bid/ask spread, as well as a 1.5 to 2% “operations fee.”
“If Wealthsimple inflates the ask price by 2 per cent or more in some cases, it is simply baking its commission fee into its spread,” the crypto class action states.
Wealthsimple reportedly raised $750 million last year to give it a total valuation of $5 billion, making it one of the most valuable private technologies companies in Canada.
The online bank challenger reportedly first began offering crypto trading for bitcoin and ethereum back in 2020 before later expanding to now offer trading for more than 50 different cryptocurrencies, The Globe and Mail reports.
Abicidan wants to represent a nationwide class of investors who have used Wealthsimple or Shakepay to trade cryptocurrency.
Have you used Shakesimple or Wealthsimple to trade crypto? Let us know in the comments!
The plaintiffs are represented by Joey Zukran of LPC Avocat Inc.
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3 thoughts onCrypto class action alleges Wealthsimple, Shakepay charge hidden fees for trades
Yes I use shakepay and it’s true they say free but it’s not free there is hidden fees
Yes I still use wealthsimple
Came lookikg for the wealthsimple class action suit