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.
Background
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. 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.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
