Binance Sued by UK Investors Over $200M in Alleged Derivative Losses

UK-based investors are suing Binance and its founder Changpeng Zhao for $200 million in damages, alleging that the crypto exchange offered and sold derivatives without regulatory approval.

The law firm KP Law represents almost 1,700 UK investors who claim to have lost 'tens of thousands of pounds' due to Binance's leverage tokens, futures contracts, and options offerings.

Binance allegedly breached the Financial Services and Markets Act 2000 by offering these products without regulatory approval. The Financial Conduct Authority banned such products from being offered to retail customers in January 2021, but Binance continued to offer them.

The lawsuit also names the Binance-affiliated Nest Exchange and 'persons unknown' as defendants. Binance has stated that it will 'defend against these claims through the appropriate legal process' and remains committed to its obligations to users and operating in accordance with applicable law.