United Kingdom · European Union · Cointelegraph
Reuters also reported that multiple UK users lost “tens of thousands of pounds” through the products
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KP Law said it is still identifying the full scope of affected customers.
Key facts
- Almost 1,700 UK investors are reportedly suing Binance and its founder Changpeng Zhao for 150 million British pounds ($200 million), alleging the crypto exchange offered and sold crypto derivatives
- One of the affected customers, Tomas Sutas, was a financial controller who allegedly invested more than 100,000 British pounds ($132,400) into Binance’s derivatives products before the value
- One Binance customer said he lost the equivalent of more than $132,000 from the crypto exchange’s derivatives offerings before restrictions were imposed on Binance
- Binance has also been facing allegations that it facilitated $850 million in transactions tied to a sanctioned Iranian financier that flowed to Iran’s Islamic Revolutionary Guard Corps
Summary
One Binance customer said he lost the equivalent of more than $132,000 from the crypto exchange’s derivatives offerings before restrictions were imposed on Binance. Almost 1,700 UK investors are reportedly suing Binance and its founder Changpeng Zhao for 150 million British pounds ($200 million), alleging the crypto exchange offered and sold crypto derivatives without regulatory approval. The law firm representing the investors, KP Law, said Binance’s leverage tokens, futures contracts and options offerings breached the Financial Services and Markets Act 2000 and that these products continued to be offered after the Financial Conduct Authority banned such products from being offered to retail customers in January 2021. “There appeared to be no effective barrier preventing UK customers from accessing them,” the law firm said. Binance told Cointelegraph it would “defend against these claims through the appropriate legal process” and it “remains committed to its obligations to users and to operating in accordance with applicable law.”