Binance Faces Group Action Over Alleged Unauthorized Crypto Sales

A group action claim has been filed against Binance and its founder Changpeng Zhao ('CZ') in the UK, alleging unauthorized crypto sales. The claim represents over 2,700 consumers who traded cryptocurrency derivative products on Binance.com without authorization from the Financial Conduct Authority (FCA). The total value of claims is estimated to be £250m, with a potentially larger final figure expected.

The claimants argue that Binance knowingly sold high-risk and complex derivative products to UK-based users without FCA approval. These products involved leverage, futures, and options contracts, allowing users to speculate on cryptocurrency prices. The claimants contend that these products are specified investments within the Financial Services and Markets Act 2000 (FSMA), requiring authorization or exemption.

Many consumers suffered substantial losses due to transactions with Binance, losing tens of thousands and millions of pounds. Hannah Sharp, partner at KP Law, stated: 'It is public knowledge that Binance have failed to cooperate with regulators.' The FCA banned Binance Markets Limited from regulated activities in 2021.

The UK regulator will open its authorization gateway for the new crypto asset regime on September 30, 2026. Binance has over 300 million customers globally and is expected to apply for a UK cryptocurrency license.