Binance Sued by Over 1,700 UK Investors Seeking $200 Million

Almost 1,700 UK investors are suing Binance and its founder Changpeng Zhao for $200 million in damages. They claim the crypto exchange offered and sold derivatives without regulatory approval, breaching the Financial Services and Markets Act 2000.

The law firm representing the investors, KP Law, said Binance's leverage tokens, futures contracts, and options offerings were available to UK customers after the Financial Conduct Authority banned such products in January 2021.

Binance has been facing several challenges recently, including failing to secure a Markets in Crypto-Assets-compliant license from an EU member state. The exchange also denied allegations that it facilitated $850 million in transactions tied to a sanctioned Iranian financier.

One of the affected customers, Tomas Sutas, lost over £100,000 ($132,400) invested in Binance's derivatives products. Multiple UK users reportedly lost 'tens of thousands of pounds' through these products.