British crypto investors are suing Binance and CZ, seeking $200 million in damages.

According to Mars Finance, on July 1st, nearly 1700 UK investors filed a lawsuit against Binance and its founder CZ, seeking £150 million (approximately $200 million) in damages, accusing the trading platform of offering and selling crypto derivatives without regulatory approval. KP Law, the law firm representing the investors, stated that Binance's leveraged tokens, futures contracts, and options products violated the Financial Services and Markets Act 2000, and continued to be offered even after the UK Financial Conduct Authority banned such products from being offered to retail clients in January 2021. The firm stated, "There appears to be no effective barrier preventing UK clients from accessing these products." Binance stated that it will "defend against these claims through appropriate legal proceedings" and that it "remains committed to fulfilling its obligations to users and operating in accordance with applicable law." According to Reuters, the lawsuit has been filed in the High Court of London, with Binance affiliate Nest Exchange and "unidentified persons" also named as defendants. It is understood that one affected customer, Tomas Sutas, had invested over £100,000 (approximately $132,400) in Binance derivatives, which subsequently became worthless. Several UK users have reportedly lost tens of thousands of pounds through related products. KP Law stated that they are still confirming the full scope of affected customers.