A group legal claim against crypto trading platform Binance and its founder has expanded with the addition of 1,000 new UK-based retail investors. The case, originally filed in the High Court in June, now involves approximately 2,700 claimants in England and Wales.
The total value of the claim is estimated at £250m. KP Law, representing the claimants, stated that the eventual total claim is “expected to be significantly larger.”
The lawsuit centres on allegations that Binance and its founder, former chief executive Changpeng Zhao, sold high-risk derivative products to UK users without regulatory authorisation. Claimants allege these products were made available from late 2019 to early 2020 and promoted through various campaigns.
The Financial Conduct Authority (FCA) banned Binance Markets Limited, Binance's UK group company, from conducting regulated activities in the UK in June 2021 without prior written consent. A Binance spokesperson stated, “We do not comment on ongoing litigation. We will defend against these claims through the appropriate legal process in due course.”