Thousands of UK investors are planning to sue cryptocurrency exchange platform Binance. The lawsuit alleges the platform sold risky derivative products without regulatory authorization, costing claimants tens of thousands of pounds.
The case centers around the period from 2019 onwards, when Binance offered UK consumers access to derivatives such as futures contracts and leveraged tokens, which were deemed unsuitable for retail investors.
Binance vowed to defend itself in response but declined further comment on ongoing litigation. The company remains committed to its obligations under applicable law, according to a spokesperson.
The London High Court case is against Cayman Islands-registered Binance Holdings, UAE-registered Nest Exchange, and founder Changpeng Zhao known as “CZ”. In 2021, the Financial Conduct Authority (FCA) banned crypto companies from offering derivatives to retail customers. Binance has taken steps to restrict UK access but faces a potential loss of its EU license bid.