Nearly 1,700 UK Investors Sue Binance for US$199M Over Unauthorized Crypto Derivatives on June 30

According to Reuters, nearly 1,700 British investors filed a lawsuit against Binance, founder Changpeng Zhao, and related entities on June 30 in London's High Court, seeking at least 150 million pounds (US$199 million). The claimants allege the crypto exchange sold and promoted complex crypto derivatives to retail customers without regulatory authorization since late 2019.

Some investors reported losing tens of thousands of pounds on leveraged products. The UK's Financial Conduct Authority banned the sale of crypto derivatives to retail consumers from January 6, 2021, citing risks from volatility and financial crime. Binance said it would defend the lawsuit but declined further comment.