Binance Sued by 2,700+ UK Consumers Over Alleged Unauthorised Crypto Sales

A group action lawsuit has been filed against Binance and its founder Changpeng Zhao on behalf of over 2,700 consumers in England and Wales who claim to have suffered losses from trading cryptocurrency derivative products on the platform.

The total value of the claims is estimated to be in excess of £250m, with an eventual total claim expected to be significantly larger. The lawsuit alleges that Binance knowingly made these high-risk products available to UK users without proper authorisation from the Financial Conduct Authority (FCA).

Binance was banned from carrying out regulated activities in the UK in June 2021, but the plaintiffs claim that the platform continued to sell complex derivative and leveraged products to UK-based users. These products allegedly involved high levels of risk or reward based on movements in the value of underlying cryptocurrencies.