Nearly 1,700 UK investors have filed a collective lawsuit against cryptocurrency exchange Binance and its founder Changpeng Zhao, seeking at least £150 million (approximately $200 million). The plaintiffs allege that Binance unlawfully offered high-risk derivatives products to retail customers, violating the UK Financial Conduct Authority (FCA) ban on crypto derivatives for retail investors enacted in 2021. A Binance spokesperson stated the company will vigorously defend itself and remains committed to complying with applicable laws and fulfilling obligations to its users. This legal action underscores the intensifying regulatory scrutiny of crypto derivatives trading in retail markets globally.
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