Binance Hit with £150M Lawsuit Over Unauthorized Derivatives Sold to 1,700 UK Traders

Nearly 1,700 UK investors have filed a £150 million claim against Binance and founder Changpeng Zhao in London's High Court, alleging they sold high-risk crypto derivatives without authorization.

The suit claims that Binance began marketing complex leveraged derivative products to UK retail investors in late 2019, roughly two years before the country's Financial Conduct Authority (FCA) formally restricted retail access to such products in 2021. The investors argue that these derivatives were unsuitable for retail traders and were sold without the regulatory approvals required in Britain.

Binance says it will defend the claims 'vigorously' and reaffirmed its commitment to complying with applicable laws. The company has faced a long series of legal and regulatory challenges across multiple jurisdictions, but has repeatedly said it has overhauled its compliance program.