TechFlow news, July 1, according to Reuters, nearly 1,700 UK investors have filed a lawsuit against Binance and its founder Changpeng Zhao (CZ) at the London High Court, claiming at least 150 million pounds (approximately 200 million USD). The plaintiffs allege that since the end of 2019, Binance sold high-risk complex derivatives such as leveraged products to them without UK regulatory authorization, violating the "Financial Services and Markets Act," with some investors claiming losses of up to tens of thousands of pounds.
The defendants in this case include Cayman Islands-registered Binance Holdings, UAE-registered Nest Exchange, Changpeng Zhao himself, and "persons unknown." Binance stated it will actively defend against the lawsuit but refused to comment further on the litigation. Notably, the UK Financial Conduct Authority (FCA) banned crypto companies from providing derivatives to retail clients in 2021, and Binance's current main licensed jurisdiction is the UAE.
