Binance Sued by 1,700 UK Investors Over Unauthorized Crypto Derivatives

UK-based investors have launched a group lawsuit against Binance and its founder Changpeng Zhao for $200 million. The claimants, who number around 1,700 individuals, allege that Binance sold risky crypto derivatives to retail investors without the required authorization from the UK's Financial Conduct Authority (FCA).

The plaintiffs assert that between late 2019 and 2020, Binance offered products like leveraged tokens, options, contracts, and futures without FCA approval. The exchange's actions allegedly led to significant financial losses for the traders.

Hannah Sharp, a partner at the law firm representing the victims, emphasized that her clients had suffered substantial losses and were determined to hold CZ and Binance accountable.