Binance and its former CEO, Changpeng Zhao, are facing a major lawsuit in the United Kingdom as nearly 1,700 investors seek approximately $200 million in damages.
The group lawsuit, filed in London’s High Court, accuses Binance of selling high risk cryptocurrency derivative products to retail investors without proper authorization. According to the claimants, Binance offered products such as leveraged tokens, options, futures, and contracts between late 2019 and 2020 without approval from the UK’s Financial Conduct Authority.
The investors argue that these derivatives qualify as specialized investments under the Financial Services and Markets Act. They claim Binance continued offering these complex financial products even after regulatory restrictions were introduced.
The lawsuit also alleges that Binance actively promoted these products through advertising campaigns, social media content, online materials, and email marketing.
Hannah Sharp, who represents the claimants, stated that her clients suffered substantial financial losses, with some losing tens of thousands of dollars and others losing millions. She added that the legal team is committed to holding both Binance and Zhao accountable.
Binance has acknowledged the legal action but has not directly addressed the allegations. In a statement, the company said it would not comment on ongoing litigation and intends to defend itself through the appropriate legal process.
This lawsuit adds to Binance’s growing list of regulatory and legal challenges worldwide. The company has recently struggled with regulatory approval in Europe, including difficulties securing a crypto license within the European Union.
Although Binance initially indicated it might reduce services in the region, Zhao later reaffirmed the company’s commitment to the European market and stated that it plans to pursue licensing through alternative jurisdictions.
The pressure on crypto firms has increased after the European Securities and Markets Authority instructed unauthorized digital asset companies to shut down operations by July 1 if they failed to secure licensing under MiCA regulations.
Meanwhile, UK regulators continue to maintain a cautious stance toward cryptocurrency. The FCA has repeatedly warned that crypto investments carry significant risks and recently introduced new rules requiring firms to meet stronger financial safety standards, comply with anti money laundering regulations, prevent market abuse, and improve consumer protection.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
