Reuters: Nearly 1,700 UK investors are suing Binance and CZ in London for £150 million

According to Reuters, nearly 1,700 British investors are suing the crypto trading platform Binance (Binance) and its founder, Changpeng Zhao (CZ), in the London High Court, with claims amounting to at least £150 million (about $200 million).

The plaintiff alleges that since the end of 2019, the Binance entity has sold high-risk and complex crypto derivatives such as leverage to UK retail investors without regulatory authorization, and has carried out related promotions in violation of the UK's Financial Services and Markets Act. Some of the plaintiffs claimed that they had lost tens of thousands of pounds as a result. According to reports, the defendants in this lawsuit include Binance Holdings registered in the Cayman Islands, Nest Exchange registered in the UAE, Zhao Changpeng, and other unknown operators of the Binance trading platform.

In response to the allegation, a Binance spokesperson declined to comment specifically on the ongoing lawsuit, but stated that the company would actively defend and emphasized that Binance remains committed to fulfilling its obligations to users and operating within the framework of applicable law. According to background data, the UK Financial Conduct Authority (FCA) explicitly banned crypto companies from providing derivatives services to retail customers in 2021.