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£150M UK lawsuit accuses Binance, Zhao of selling unapproved derivatives
Nearly 1,700 UK retail investors allege Binance marketed unapproved crypto derivatives from late 2019, seeking £150M in damages. The case hits as UK regulators prepare new crypto rules by 2027.
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Nearly 1,700 UK investors have filed a group lawsuit against Binance Holdings, founder Changpeng Zhao, and Nest Exchange. The claimants seek at least £150 million in damages. Their central argument: Binance sold high-risk crypto derivatives to UK retail customers without authorization from the Financial Conduct Authority.
The products include leveraged contracts, futures, and options. These instruments can multiply gains but carry the risk of total loss. Many claimants say they lost tens of thousands of pounds trading them.
The alleged conduct stretches from late 2019 through the period when UK regulators were tightening the rules. The FCA banned the sale of crypto derivatives to retail investors entirely in January 2021. The claimants argue Binance violated the Financial Services and Markets Act by marketing these products without FCA approval.
Binance said it takes compliance seriously and intends to defend the case. It did not comment on the specific allegations.