Binance Lawsuit Hits £250m as 1,000 New Investors Join Claim
A £250m lawsuit against crypto firm Binance has grown significantly after 1,000 new UK-based retail investors joined the group claim. The case alleges that Binance and its founder Changpeng Zhao knowingly sold high-risk, complex products to consumers without regulatory authorisation from the Financial Conduct Authority (FCA). These products were known as derivative contracts, which are used by financial professionals to hedge against risk or in market speculation.
The FCA banned Binance's UK group company, Binance Markets Limited, from carrying out any regulated activities in the UK in June 2021. The claimants argue that Binance promoted these products through campaigns, social media posts, email communications, and promotional campaigns between late 2019 and early 2020. Many of the investors suffered substantial losses, with some losing tens of thousands or even millions of pounds.
Binance spokesperson declined to comment on the ongoing litigation, stating that they will defend against these claims through the appropriate legal process in due course. The company remains committed to its obligations to users and operating in accordance with applicable law.