UK investors sue Binance in London for £150 million
A representation of the cryptocurrency is seen in front of Binance logo in this illustration taken, March 4, 2022. REUTERS/Dado Ruvic/Illustration
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LONDON, June 30 : Almost 1,700 British investors are suing Binance and founder Changpeng Zhao for at least £150 million ($200 million), alleging the crypto trading platform sold them risky, complex derivative products without regulatory authorisation.
The claimants, some of whom said they had lost tens of thousands of pounds, allege Binance entities knowingly sold investments such as leveraged products, which can amplify gains or losses, from late 2019 and promoted them in breach of the Financial Services and Markets Act.
Binance, the world’s largest crypto exchange, vowed to defend itself but declined to comment further on ongoing litigation.
“Binance remains committed to its obligations to users and to operating in accordance with applicable law,” a spokesperson said.
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The London High Court case is being brought against Cayman Islands-registered Binance Holdings, UAE-registered Nest Exchange, Zhao — known as CZ — and “persons unknown”, who operate the Binance Trading Platform.
Britain’s financial regulator, the Financial Conduct Authority, banned crypto companies from offering derivatives to retail customers in 2021 and Binance took some steps to restrict UK access, requiring them to complete additional information.
The company’s main licence is in the United Arab Emirates after attempts to secure a licence in Greece unravelled this month.
($1 = 0.7544 pounds)
Source: Reuters
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