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Binance and CZ sued for £150M by UK crypto investors
1,700 investors claim Binance sold crypto derivatives without FCA approval. Losses exceed £100,000 each. The case tests collective redress in crypto.
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Around 1,700 retail investors have filed a group action in London's High Court against Binance and its founder Changpeng Zhao. The claim, valued at at least £150 million, alleges the exchange sold high-risk crypto derivatives without authorization from the Financial Conduct Authority.
KP Law represents the claimants. The lawsuit names Binance Holdings Ltd., Zhao, Nest Exchange, and unidentified others as defendants. Individual investors report losses above £100,000 each. The alleged misconduct dates back to late 2019, before the FCA banned retail crypto derivatives in January 2021. The claimants argue the mis-selling continued after that ban took effect.
The FCA issued a consumer warning against Binance in June 2021, stating the exchange could not conduct regulated activity in the UK. Binance's UK subsidiary later surrendered its registration attempt. Separately, Binance and Zhao reached a settlement with US authorities in late 2023. Zhao pleaded guilty to violating the Bank Secrecy Act and served a four-month prison sentence.