Nearly 1,700 UK investors are suing Binance and Changpeng Zhao for 150 million pounds — about $200 million. They say Binance sold crypto derivatives without regulatory approval, breaking the Financial Services and Markets Act 2000.
The law firm KP Law says Binance offered leverage tokens, futures, and options to UK customers even after the FCA banned such products for retail investors in January 2021. “There appeared to be no effective barrier preventing UK customers from accessing them,” the firm said.
One customer, Tomas Sutas, lost over $132,000. Multiple others lost tens of thousands of pounds. Reuters reports the lawsuit was filed in the London High Court. The Binance-linked Nest Exchange and “persons unknown” were also named as defendants.
Binance says it will defend against the claims through the proper legal process and remains committed to operating in accordance with applicable law.
This adds to Binance’s growing legal headaches. The exchange failed to secure an EU license before the July 1 MiCA deadline. It’s also facing allegations it facilitated $850 million in transactions tied to Iran’s Islamic Revolutionary Guard Corps — which Binance strongly denies.
