Binance, CZ Sued for $200M in UK Over Unauthorized Derivatives

The case renews legal pressure on Zhao, who spent the last two years rebuilding his public image. He stepped down as Binance’s chief executive in November 2023. Months later he reached a $4.3 billion settlement with U.S. authorities. He pleaded guilty to money-laundering and sanctions violations and served four months in a U.S. federal prison.

In October 2025, President Donald Trump pardoned Zhao. Since leaving day-to-day management, he has advised roughly a dozen governments on crypto regulation and asset tokenization. He launched the free education platform Giggle Academy and continues backing startups through his investment firm YZi Labs. He has ruled out returning as CEO.

The UK case adds to a long list of legal actions Binance has faced worldwide. A ruling that allows the claim to proceed could open the door to further retail lawsuits in Britain, the claimants argue. Leveraged crypto derivatives remain banned there for ordinary investors. Binance, now led by chief executive Richard Teng, has pointed to hundreds of millions of dollars in annual compliance spending as evidence of its reformed operations.

The claimants’ core argument: the products were mis-sold years before the rules caught up. Britain’s derivatives ban for retail investors took effect in 2021. The alleged marketing began well before that. At the time, oversight of crypto trading was thinner.

Binance said it would “defend the claims vigorously” and reiterated its compliance commitments. A hearing date has not been set.