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1,692 UK Traders Sue Binance for £150M Over Leverage Losses
Claimants seek at least £150M from Binance for losses on high-leverage crypto trades after FCA ban. Case tests whether UK courts can hold offshore exchange liable.
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A group of 1,692 British retail investors filed a joint lawsuit in London's High Court this week. The claim demands at least £150 million ($200 million) in compensation for losses on high-leverage cryptocurrency derivatives.
The lawsuit alleges that Binance marketed and sold these products to UK residents after the Financial Conduct Authority banned retail crypto derivatives in January 2021. The FCA's prohibition remains in effect. Binance is not authorised by the regulator to offer regulated financial services.
The claimants argue that Binance continued offering leveraged products through its global platform, bypassing the restriction. The exchange's main operating entity is registered in the Cayman Islands. Binance has argued in prior cases that its global platform falls outside UK court jurisdiction. The lawsuit tests whether British investors can hold an offshore exchange accountable for alleged violations of domestic rules.