UK Investors Sue Binance in London for £150 Million

Nearly 1,700 investors in Britain are suing Binance and its founder Changpeng Zhao for at least £150 million (about $200 million), claiming the crypto exchange sold them risky, complex derivative products without the proper regulatory greenlight.

At a Glance

• Around 1,700 UK claimants are seeking a minimum of £150 million from Binance and Changpeng Zhao.
• The lawsuit centers on leveraged derivative products sold from late 2019 onward.
• Claimants say the sales breached the Financial Services and Markets Act.
• The case names Binance Holdings, Nest Exchange, Zhao, and unnamed operators of the trading platform.
• Britain's FCA banned crypto derivatives for retail customers back in 2021.

What the Lawsuit Actually Alleges

The case, filed in London's High Court, accuses Binance of knowingly offering leveraged products, the kind that can magnify both profits and losses, to UK customers without proper authorization. Some of the nearly 1,700 claimants say they lost tens of thousands of pounds each. Their lawyers argue Binance marketed these products in violation of British financial services law, essentially selling sophisticated instruments to retail investors who had no business being anywhere near that level of risk.

The defendants named in the filing include Cayman Islands registered Binance Holdings, UAE registered Nest Exchange, Zhao himself (widely known by his initials, CZ), and a catchall group described as