UK investors sue Binance in London for £150M
A group of UK investors has filed a lawsuit against Binance in London seeking £150 million in damages, alleging the cryptocurrency exchange breached its duties and caused financial losses. The case adds to growing legal challenges facing Binance in multiple jurisdictions.
Background
- Binance is the world’s largest cryptocurrency exchange by trading volume, founded in 2017 by Changpeng Zhao ("CZ"). It has faced regulatory crackdowns worldwide, including by the UK's Financial Conduct Authority (FCA), which in 2021 ordered it to stop all regulated activities in Britain.
- The £150M lawsuit is brought by a group of UK investors seeking damages from Binance, likely tied to losses from crypto investments they allege were mishandled or marketed without proper authorization.
- This case is part of a broader pattern: Binance has been sued by regulators and users in multiple jurisdictions (US, Canada, Australia) over issues ranging from unregistered securities offerings to money-laundering compliance failures.
- The legal action in London is significant because UK courts have increasingly asserted jurisdiction over crypto disputes, and a ruling against Binance could set a precedent for how exchange liability is treated under British financial law.
- The lawsuit specifically targets Binance's UK entity (Binance Markets Limited) which was never actually allowed to operate by the FCA, creating a complex legal situation around which corporate entity bears responsibility.