Binance Hit with £250m Group Action Over Alleged Unauthorized Crypto Sales
Binance, one of the world's largest crypto exchanges, is facing a £250m group action lawsuit over allegations it sold unauthorized cryptocurrency derivative products to UK customers.
The claim, brought by KP Law on behalf of over 2,700 consumers in England and Wales, alleges that Binance knowingly made high-risk, complex derivative products available to users without authorization from the Financial Conduct Authority (FCA).
The FCA banned Binance Markets Limited from carrying out regulated activities in the UK without prior written consent in June 2021. The claimants contend that these complex products are specified investments within the scope of the Financial Services and Markets Act 2000, and only authorized persons or exempt persons were permitted to sell them to UK consumers.
Hannah Sharp, partner at KP Law, said: 'It is public knowledge that Binance have failed to cooperate with regulators. That's why their UK group company, Binance Markets Limited, was barred from regulated activity in the United Kingdom in 2021.'