Binance Sued for £250m Over Alleged Unauthorised Crypto Sales
Binance, one of the world's largest cryptocurrency exchanges, is facing a £250m group action lawsuit in the UK over alleged unauthorized crypto sales.
The claim, brought by more than 2,700 consumers in England and Wales, alleges that Binance sold high-risk, complex derivative products to UK users without proper authorization from the Financial Conduct Authority (FCA).
The FCA banned Binance Markets Limited from carrying out regulated activities in the UK in June 2021, but the claimants argue that Binance continued to sell these products to UK consumers.
Derivative products, such as futures and options contracts, were allegedly used by Binance to amplify gains or losses, and may have offered consumers far higher levels of risk or reward based on movements in the value of underlying cryptocurrencies.