UK Investors Sue Binance and CZ for $200 Million Over Alleged Unregulated Derivatives

UK crypto investors are suing Binance and its founder Changpeng Zhao for $200 million. Almost 1,700 UK investors have reportedly filed a lawsuit alleging that Binance offered and sold crypto derivatives without regulatory approval.

The Financial Conduct Authority (FCA) banned such products from being offered to retail customers in January 2021, but the law firm representing the investors claims that these products continued to be available on Binance. 'There appeared to be no effective barrier preventing UK customers from accessing them,' KP Law said.

Binance has responded by stating that it will 'defend against these claims through the appropriate legal process' and remains committed to operating in accordance with applicable law.

The lawsuit is part of a growing list of legal and regulatory challenges facing Binance, including its recent failure to secure a Markets in Crypto-Assets-compliant license from a European Union member state before the July 1 deadline. Additionally, Binance has been accused of facilitating $850 million in transactions tied to a sanctioned Iranian financier that flowed to Iran's Islamic Revolutionary Guard Corps.