Almost 1700 investors from the UK initiated a £150 million ($200 million) lawsuit against Binance and its founder Changpeng Zhao (CZ). According to the claim, the crypto exchange inappropriately provided derivatives on its platform, which the UK regulator banned from selling to retail investors.
The legal action alleges that Binance continued offering leveraged products to ordinary customers despite the regulatory ban. Binance has denied the allegations and prepared a legal response to the investors. The crypto exchange expects the case to escalate as one of the several high-profile litigation and regulatory challenges it faces in multiple jurisdictions.
The London-based court received the complaint from KP Law, which represents the collective of investors. The law firm argued that Binance’s leveraged tokens, futures, and options products violate the Financial Services and Markets Act 2000.
As stated in the filing, UK retail investors remained able to trade on Binance’s derivatives market even after the Financial Conduct Authority (FCA) formally prohibited their sale to retail customers in January 2021. KP Law claimed there were insufficient controls to prevent ordinary investors from using such instruments.
Binance responded to the allegations, calling them false and reiterating its commitment to complying with the law. The crypto exchange stated it would respond accordingly through the appropriate legal channels.
According to multiple reports, one investor lost over $132,000 on the derivatives market, while others complained of losing dozens of thousands of pounds. KP Law suspects there may be many more victims and is looking for additional claimants.
The timing of the lawsuit comes as Binance deals with increased regulatory and litigation pressure. Recently, the crypto exchange failed to obtain a MiCA-compliant license in the EU by the July deadline. Additionally, the FCA accused Binance of facilitating transactions with Iran’s sanctioned entities, which it strongly denied.
Binance and its co-founder Changpeng Zhao face a claim from nearly 1,700 investors who allege that the world’s biggest crypto exchange offered risky derivative products to retail traders without approval from the UK financial regulator. https://t.co/WD2b0a6i0w pic.twitter.com/V2NmzBjLqP
— Financial Times (@FT) June 30, 2026
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