Binance Faces £150 Million Lawsuit Over Complex Derivative Sales

Almost 1,700 British investors are suing Binance and its founder Changpeng Zhao for at least £150 million ($200 million) in a London High Court case. The claimants allege that Binance entities sold them risky, complex derivative products without regulatory authorization from late 2019.

The Financial Conduct Authority banned crypto companies from offering derivatives to retail customers in 2021, and while Binance took some steps to restrict UK access, it still allowed users to trade these complex products. The claimants allege that Binance knowingly sold investments such as leveraged products, which can amplify gains or losses.

Binance has vowed to defend itself but declined to comment further on the ongoing litigation. In a statement, a spokesperson said, 'Binance remains committed to its obligations to users and to operating in accordance with applicable law.'