Binance Faces £250M Group Action Over Alleged Unauthorised Crypto Sales

A group action claim against Binance and its founder Changpeng Zhao has been filed in the High Court in London, representing over 2,700 consumers in England and Wales.

The claim alleges that Binance sold high-risk crypto derivative products to UK-based users without authorisation from the Financial Conduct Authority (FCA), which banned Binance Markets Limited from regulated activities in June 2021.

The total value of claims is estimated at over £250m, with a larger total expected. The claimants believe that these complex products are specified investments within the scope of the Financial Services and Markets Act 2000 (FSMA), which only authorised persons or exempt persons were permitted to sell to UK consumers.

The individuals bringing this claim say Binance knowingly made these products available to users on their platform from late 2019/early 2020, promoting them through promotional campaigns, online materials, social media posts, and email communications.