Summary Points
- Over 1,700 UK investors sued Binance and CZ for offering risky crypto derivatives without FCA approval, seeking $200M in damages.
- The lawsuit claims Binance sold leveraged tokens, options, and futures despite being banned from doing so by UK regulators in 2021.
- Binance acknowledges the lawsuit but hasn’t responded in detail, emphasizing it will contest the claims through legal channels.
- The case highlights ongoing regulatory pressures on Binance, including licensing issues in Europe and stricter UK crypto rules aimed at protecting investors.
UK Investors Sue Binance and Changpeng Zhao for $200 Million
Legal Action Begins
More than 1,700 investors in the UK are taking legal action against Binance and its founder, Changpeng Zhao. They filed the lawsuit in London’s High Court. The claimants say Binance sold risky cryptocurrency products to regular customers without proper approval. These products include leveraged tokens, options, and futures. The investors say Binance offered these even after the UK’s financial regulator, the FCA, banned such sales in 2021. They also accuse Binance of advertising these products through social media and emails. The investors want about $200 million in compensation, claiming they lost large sums of money. Their lawyer, Hannah Sharp, said many investors lost tens of thousands of dollars, and some lost millions. The group believes Binance and Zhao should be held responsible for these losses.
Binance Responds to Lawsuit
Binance has not officially addressed the specific allegations. However, the company said it is aware of the lawsuit and plans to defend itself in court. Binance’s statement emphasized that it will contest the claims through legal channels and has not provided details about the case. Meanwhile, this lawsuit adds to Binance’s ongoing problems with regulators. Recently, the European Union’s securities watchdog ordered Binance to halt certain crypto activities in Europe unless it obtained a special license. After this, Binance said it might stop offering some services in Europe. Still, Zhao said the company remains committed to serving European customers and hopes to secure the necessary licenses soon. The legal challenge in the UK reflects increasing scrutiny of crypto companies by regulators worldwide.
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