UK investors sue Binance and Zhao Changpeng for US$200 million
Almost 1,700 investors from the UK are taking legal action against Binance and its CEO, Zhao Changpeng, seeking a minimum of £150 million (US$200 million). They claim that the cryptocurrency exchange provided them with high-risk derivative products without the necessary regulatory authorization. Binance, recognized as the largest cryptocurrency exchange globally, has announced its intention to mount a defense but has refrained from making additional statements regarding the current lawsuit. In 2021, the UK Financial Conduct Authority prohibited crypto firms from selling derivatives to retail clients, prompting Binance to implement measures to limit access from the UK by asking for extra information.
Key facts
- Nearly 1,700 UK investors are suing Binance and Zhao Changpeng.
- The lawsuit seeks at least £150 million (US$200 million).
- Investors allege Binance sold risky derivative products without regulatory authorization.
- Binance is the world's largest cryptocurrency exchange.
- Binance vowed to defend itself but declined further comment.
- The UK Financial Conduct Authority banned crypto derivatives for retail customers in 2021.
- Binance had taken steps to restrict UK access, requiring additional information.
- The litigation is ongoing.
Entities
Institutions
- Binance
- Financial Conduct Authority
Locations
- United Kingdom