Nearly 1,700 individuals have initiated legal action against cryptocurrency trading platform Binance, seeking over £150 million in damages. The group claim, filed at the High Court on Monday, alleges that Binance sold financial products to users based in the United Kingdom without the necessary regulatory authorisation, resulting in significant financial losses for some investors.

The lawsuit targets Binance, its founder and former chief executive Changpeng Zhao, as well as Nest Exchange, the operator responsible for running the trading site. According to KP Law, the legal firm representing the claimants, this case represents the first of its kind in the UK involving collective action against a cryptocurrency exchange for alleged unauthorized product sales.

The claimants contend that Binance’s activities contravened UK financial regulations, contributing to the considerable losses experienced by users, with some individual investors reportedly losing tens of thousands of pounds. The legal proceedings underscore growing scrutiny of cryptocurrency platforms and their compliance with national financial oversight.

Both Binance and the UK’s Financial Conduct Authority (FCA) were contacted for comment but had not responded at the time of reporting. The FCA has previously warned consumers about the risks involved in cryptocurrency investments and has taken regulatory action against several firms operating without proper authorization.

This case could have wider implications for the cryptocurrency industry’s regulatory environment in the UK, potentially influencing future enforcement measures and investor protections related to digital asset trading platforms.