UK Consumers Sue Binance Over Alleged Unauthorized Derivatives Sales
A group of over 2,700 consumers has joined a class action lawsuit against Binance and its founder Changpeng Zhao in the UK. The claim, filed on behalf of those who traded cryptocurrency derivative products on Binance.com between late 2019 to early 2020, alleges that the platform sold high-risk, complex financial instruments without proper authorization.
The Financial Conduct Authority (FCA) has opened the authorisation gateway for its new crypto asset regulatory regime, which will come into force in October 2027. Binance is expected to apply for a licence under this regime.
The claimants contend that Binance knowingly made these products available to UK users and sold them without proper authorization. Many of the retail investors suffered substantial losses as a result of transactions placed with Binance, losing tens of thousands and in some cases millions of pounds.