Nearly 1,700 UK investors have filed a lawsuit against Binance in the London High Court, alleging the exchange sold them high-risk leveraged derivative products without ever obtaining approval from Britain’s financial regulator. The claim seeks at least £150 million, roughly $200 million, in damages.
The claimants say Binance marketed complex crypto derivatives to retail investors starting in late 2019, a full two years before the UK’s Financial Conduct Authority formally restricted retail access to such products.
What the lawsuit actually alleges
The High Court action names Binance Holdings Ltd, which is based in the Cayman Islands, alongside UAE-registered entity Nest Exchange, founder Changpeng Zhao (commonly known as CZ), and unnamed individuals. The total number of claimants stands at 1,692.
At the heart of the case is a straightforward argument: selling leveraged crypto derivatives to UK retail customers without FCA authorization violates the Financial Services and Markets Act. Some of the claimants report losing tens of thousands of pounds on these products.
