Binance Sued by Over 1,700 UK Investors for £150M Over Leveraged Crypto Products

A lawsuit filed in London by over 1,700 UK retail investors against Binance and its founder Changpeng Zhao seeks at least £150 million in damages. The claimants allege that Binance promoted and sold complex leveraged products to them, including tokens, futures, options, and margin trading.

The case names Binance and CZ, covering activity from September 13, 2019 onwards. Law firm KP Law represents the group of investors, with Tomas Sutas as lead claimant. The lawsuit taps into the tension between UK regulations on retail crypto derivatives and exchanges' marketing practices.

UK regulators have taken a conservative stance on complex crypto exposure for everyday users, banning the sale of crypto derivatives to retail consumers in 2021 and tightening financial promotions around crypto. The lawsuit could set a tone for how exchanges market complex products to non-professional users in the UK.