Nearly 1,700 UK investors have filed a collective legal claim against Binance Holdings Ltd. and founder Changpeng Zhao, seeking at least £150 million in damages.
The core allegation states Binance sold complex, high-risk crypto derivatives-including leveraged instruments, futures, and options-to retail customers without authorization from the Financial Conduct Authority.
The claimants argue Binance violated the Financial Services and Markets Act by offering unapproved derivatives starting in late 2019. The FCA enacted a total ban on the sale of these products to retail investors in January 2021, meaning the alleged misconduct ran through the period regulators were actively moving to restrict such offerings.
Binance has stated its commitment to compliance and confirmed it intends to defend the case. The legal action names Binance Holdings Ltd., Nest Exchange, Zhao personally, and unnamed additional persons as defendants.
The case arrives at a critical moment for UK crypto regulation, with the FCA preparing a new framework expected by 2027. It follows broader international regulatory troubles for the exchange, including major US settlements in 2023 and Zhao’s guilty plea to Bank Secrecy Act violations, for which he served a four-month prison sentence before his 2024 release.