Binance Sued by UK Investors Over £250m in Alleged Unauthorized Crypto Sales
Binance, one of the world's largest cryptocurrency exchanges, is facing a group action lawsuit in the UK over alleged unauthorized sales of high-risk crypto derivative products. The claim, filed on behalf of over 2,700 consumers, including those who suffered substantial losses after trading on Binance.com, estimates a total value of claims exceeding £250m.
The Financial Conduct Authority (FCA) banned Binance Markets Limited from carrying out regulated activities in the UK without prior written consent in June 2021. However, the claimants argue that Binance knowingly made these complex products available to users in the UK from late 2019/early 2020, promoting them through various channels.
Hannah Sharp, partner at KP Law, stated: '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.'