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

A group action legal claim against Binance and its founder Changpeng Zhao has gained momentum in the UK, with over 1,000 consumers joining the suit. The total value of the claims issued to date is estimated to be in excess of £250m. The claimants argue that Binance knowingly sold high-risk derivative products to users in the UK without authorisation from the Financial Conduct Authority (FCA).

The FCA banned Binance Markets Limited in June 2021 from carrying out any regulated activities in the UK without prior written consent from the regulator. Derivative products are financial contracts that allow traders to speculate on the performance of an underlying asset, often involving leverage and futures or options contracts.

Hannah Sharp, a partner at KP Law, said: 'It is public knowledge that Binance have failed to cooperate with regulators.' The claimants contend that Binance was neither authorised nor exempt to sell these complex products in the UK. Many of the claimants suffered substantial losses as a result of transactions placed with Binance.