Over 1700 investors from the UK have launched a collective lawsuit in London’s High Court against Binance and founder Changpeng Zhao.
The claimants accuse the pair of pushing risky crypto derivatives onto retail traders without any authorization.
UK Traders Chase 200 Million Payout From Binance 🖤
The plaintiffs allege that between late 2019 and 2020 Binance offered products such as leveraged tokens options contracts and futures without approval from the UK’s Financial Conduct Authority.
The victims filed under the Financial Services and Markets Act claiming these derivatives count as specialized investments. The regulator banned such complex products in 2021 yet the exchange kept selling them anyway.
Traders also point to promotion through ads online posts social media and emails.
Hannah Sharp a partner at the representing firm noted clients suffered heavy losses and aim to hold CZ accountable.
Reports show some lost tens of thousands while others faced millions in damage with claims now targeting around 200 million in compensation.
Binance Responds To Fresh Legal Heat 🌙
Binance has acknowledged the case but offered no direct reply stating only that it avoids comments on active litigation and will handle defenses through proper channels.
This adds to ongoing regulatory hurdles including recent struggles securing an EU crypto license.
After that setback the platform initially signaled a service pullback from the region though CZ stressed continued focus on Europe via alternative permits.
ESMA had set a July 1 deadline for unlicensed firms to exit if no MiCA approval came through.
UK authorities maintain their cautious stance labeling crypto high risk while the FCA unveiled new rules requiring safety standards anti money laundering compliance and consumer protections. 💀
Just another echo from the void by iconofsin.eth 💖
