Binance Group Action Lawsuit Hits UK Shores
Binance, one of the world's largest cryptocurrency trading platforms, is facing a group action lawsuit in the UK over alleged unauthorized sales of high-risk derivative products to British consumers.
The claim, brought on behalf of over 2,700 consumers who traded cryptocurrencies on Binance.com, alleges that the platform and its founder, Changpeng Zhao ('CZ'), sold complex financial contracts without proper authorization from the Financial Conduct Authority (FCA).
The claimants, represented by law firm KP Law, say that these derivative products were not ordinary crypto investments but rather high-risk instruments involving leverage and futures/ options contracts.
The FCA banned Binance Markets Limited from carrying out regulated activities in the UK without prior consent in June 2021. The regulator is expected to open its authorization gateway for the UK's new crypto asset regime on September 30, 2026.