Binance, CZ Sued for £150M in UK Over Unauthorized Derivatives

Binance and its co-founder Changpeng Zhao face a UK High Court claim from 1,692 investors seeking up to £150 million in damages. The lawsuit alleges the exchange offered leveraged crypto derivatives to retail investors without permission under the Financial Services and Markets Act in 2019 and 2020.

The claimants say they lost money trading those products. The legal filing, reported by the Financial Times, describes losses running into the tens of thousands and, in some cases, millions of pounds. One named claimant, Tomas Sutas of London, lost more than $100,000 via Binance's derivative products, according to the report.

Hannah Sharp, partner at KP Law, represents the group. "Our clients are ordinary people, many of whom committed significant savings and who have suffered real financial harm," she said. "We are determined to hold Binance and its founder, Changpeng Zhao, to account. Cryptocurrency markets have, for too long, operated in a space where consumers have had limited recourse when things go wrong."

Binance declined to comment on the specifics. "We do not comment on ongoing litigation," the exchange said in a statement. "We will defend against these claims through the appropriate legal process in due course. Binance remains committed to its obligations to users and to operating in accordance with applicable law."