Nearly 1,700 British investors have launched legal action against Binance and its founder Changpeng Zhao, seeking at least £150 million in compensation. They claim the cryptocurrency platform offered them high-risk derivative products without proper regulatory approval. Some investors report losing substantial sums and allege that Binance entities promoted leveraged trading tools, which magnify both profits and losses, starting in late 2019 in violation of the Financial Services and Markets Act. Binance, the largest crypto exchange globally, stated it will contest the claims and emphasized its commitment to legal compliance. The case targets Binance Holdings registered in the Cayman Islands, Nest Exchange based in the UAE, Zhao, and unidentified operators of the platform. The UK Financial Conduct Authority prohibited retail sales of crypto derivatives in 2021, prompting Binance to limit access for British users. The firm now holds its primary license in the United Arab Emirates.
