British Cryptocurrency Investor Sues Binance and CZ, Seeks $200 Million

BlockBeats News, July 1st, nearly 1700 UK investors are suing Binance and its founder CZ, claiming £150 million (approximately $200 million) in damages, alleging that the exchange offered and sold crypto derivatives without regulatory approval.

The law firm KP Law representing the investors stated that Binance's leveraged tokens, futures contracts, and options products violated the Financial Services and Markets Act 2000, and these products continued to be offered after the UK Financial Conduct Authority banned such products to retail customers in January 2021. The firm said, "There seems to be no effective barrier to prevent UK customers from accessing these products."

Binance stated that it will "vigorously defend against these claims through the appropriate legal processes" and affirmed its "continued commitment to serving its users and operating in compliance with applicable laws." According to Reuters, the lawsuit has been filed in the High Court of London, with Binance affiliate Nest Exchange and "persons unknown" listed as defendants.

It is reported that one affected customer, Tomas Sutas, had invested over £100,000 (approximately $132,400) in Binance derivatives, only to see the investment value go to zero. Several UK users suffered losses of "tens of thousands of pounds" through the related products. KP Law stated that they are currently confirming the full extent of affected customers.