UK investors file $200M lawsuit against Binance over leveraged products

Over 1,700 UK crypto investors have filed a $200 million lawsuit against Binance and its founder, Changpeng Zhao, Reuters reported. The plaintiffs allege that Binance violated the Financial Services and Markets Act by illegally selling leveraged products both before and after the UK's Financial Conduct Authority (FCA) banned their sale in 2021. In response, Binance stated that it has complied with its legal obligations and will actively defend against the suit. The outlet noted that in 2023, Binance pleaded guilty and agreed to a $4.3 billion fine after being sued by the U.S. Commodity Futures Trading Commission (CFTC) for operating an illegal derivatives exchange. The outcome of the UK court's decision could set a precedent for defining the scope of responsibility for exchanges.