Binance hit with £150M UK lawsuit, MiCA license path shifts

A group of 1,692 British investors filed a claim against Binance in the UK High Court, seeking damages of up to £150 million. The lawsuit alleges the exchange offered leveraged cryptocurrency derivatives to retail investors in 2019 and 2020 without authorization required under the Financial Services and Markets Act.

The legal filing says the unauthorized products caused significant financial losses. Some investors lost tens of thousands of pounds; others lost millions. London resident Tomas Sutas reportedly lost more than $100,000 on Binance's derivatives.

Hannah Sharp, a partner at KP Law representing the investors, said the case seeks accountability for what she called years of limited consumer protection in crypto markets. Many of the affected investors committed personal savings and suffered serious financial harm, Sharp added.

Binance declined to comment on the specifics of the ongoing litigation. The company said it intends to defend itself through the appropriate legal process and reiterated its commitment to complying with applicable laws.

The lawsuit comes as Binance adjusts its licensing strategy in Europe. The exchange recently confirmed it withdrew its application for a MiCA license in Greece after reviewing the country's regulatory process and timeline. Binance is instead pursuing authorization in another EU member state.

In a statement, Binance said the decision was made with users' interests in mind. The company expressed confidence it will obtain a MiCA license in the coming months. Europe remains one of its most important markets, Binance said, and it plans to expand under the EU's harmonized MiCA rules, which took full effect July 1.

Binance acknowledged the licensing transition could affect some customers. Impacted users will receive direct communication about next steps, the exchange said.