Binance Faces £250m Group Action Over Alleged Unauthorized Crypto Sales
The UK-based law firm KP Law has filed a group action claim against crypto trading platform Binance and its founder Changpeng Zhao, also known as CZ. The claim represents over 2,700 consumers in England and Wales who traded cryptocurrency derivative products on the Binance.com platform without authorisation from the Financial Conduct Authority (FCA).
The total value of claims issued to date is estimated to be around £250m, with an eventual total expected to be significantly larger. The claimants argue that Binance knowingly made these complex products available to users in the UK from late 2019/early 2020, promoting their sale through various campaigns and communications.
The derivative products in question often involved leverage and futures contracts, allowing users to speculate on cryptocurrency prices. Many consumers suffered substantial losses as a result of transactions placed with Binance, losing tens of thousands or even millions of pounds.