{"text":[[{"start":8.04,"text":"Binance is facing a lawsuit from nearly 1,700 UK investors who allege that the world’s biggest crypto exchange offered risky derivative products to retail traders without approval from the UK financial regulator."}],[{"start":23,"text":"The claim against Binance and its billionaire co-founder Changpeng Zhao was filed at the UK High Court on Monday by 1,692 crypto investors. They allege that in late 2019 and 2020, the exchange sold products that it was not authorised to sell under the UK’s Financial Services and Markets Act."}],[{"start":43,"text":"Lawyers for the claimants say they are seeking as much as £150mn in the lawsuit."}],[{"start":48.64,"text":"It marks the latest in a string of lawsuits and problems for Binance, which has for years battled officials in different countries over its practices. The exchange has been banned by UK authorities since 2021."}],[{"start":61.92,"text":"Binance said in a statement: “We do not comment on ongoing litigation. We will defend against these claims through the appropriate legal process in due course. Binance remains committed to its obligations to users and to operating in accordance with applicable law.”"}],[{"start":76.36,"text":"The company is yet to acknowledge service of the claim in the court file."}],[{"start":80.6,"text":"In 2023, the company pleaded guilty to criminal charges related to money laundering and breaching international financial sanctions, agreeing to pay more than $4.3bn in penalties to US authorities. Zhao resigned as its chief executive, pleaded guilty to a criminal charge and spent four months in US prison. He was later pardoned by President Donald Trump."}],[{"start":102.52,"text":"More recently, the exchange failed to obtain an EU crypto licence and told customers in the region that it would stop providing services to them, the FT reported last week."}],[{"start":112.96,"text":"The UK lawsuit centres on derivative products, which retail traders could buy and use leverage in order to amplify gains or losses. The crypto traders, who are being represented by KP Law, claim that Binance pushed the products “through promotional campaigns, online materials, social media posts and email communications”."}],[{"start":132,"text":"The claimants allege that the products are “specified investments” under rules from the Financial Conduct Authority, and that Binance was not permitted to sell them as it “was neither authorised nor exempt”."}],[{"start":142.12,"text":"UK regulators have for years taken a cautious approach to crypto and told retail traders that it is a high-risk market. On Tuesday, the FCA separately set out its landmark rules for the industry, while still warning that crypto remains a risky investment. The price of bitcoin, the world’s biggest cryptocurrency, has nearly halved over the past year and is trading below $60,000."}],[{"start":165.68,"text":"Hannah Sharp, partner at KP Law, said in a statement: “Our clients are ordinary people, many of whom committed significant savings and who have suffered real financial harm. We are determined to hold Binance and its founder, Changpeng Zhao, to account. Cryptocurrency markets have, for too long, operated in a space where consumers have had limited recourse when things go wrong.”"}],[{"start":188.64,"text":"Many of the people “suffered substantial losses” after trading, “losing tens of thousands and in some cases millions of pounds”, according to the statement. The claimants are seeking over £150mn to cover the value of their losses."}],[{"start":202.5,"text":"One of them, Tomas Sutas from London, ploughed more than £100,000 into the derivative products on Binance, and his investments were later wiped out. Sutas is a named claimant in what is structured as a group legal claim."}],[{"start":220.68,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1782879105_9107.mp3"}