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3w ago

Nearly 1,700 UK Investors Sue Binance and Changpeng Zhao for £150 Million Over Unauthorised Derivatives

The London High Court claim could decide whether global crypto exchanges must hold local authorisation to sell regulated derivative products.

Changpeng Zhao
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Binance and cz sued for $200 million in uk over ‘unauthorized’ derivatives sold to 1,700 traders

Overview

  • The claim was filed in the London High Court on Tuesday and names 1,692 UK investors seeking at least £150 million in damages for losses tied to leveraged crypto derivatives.
  • Plaintiffs allege Binance entities marketed and sold complex products such as leveraged tokens, futures and options to retail UK customers starting in late 2019 without FCA authorisation.
  • The legal action names Cayman Islands-registered Binance Holdings Ltd, UAE-registered Nest Exchange, founder Changpeng Zhao and unnamed persons as defendants.
  • Binance said it will defend the case and reiterated its commitment to comply with applicable law while the company faces broader regulatory and licensing challenges in Europe and the UAE.
  • If the court allows the claim to proceed on its merits, the case could test cross-border enforcement of the Financial Services and Markets Act and shape how exchanges must restrict or licence products for local retail customers.