Nearly 1,700 UK investors have filed a collective legal action against Binance Holdings Ltd., founder Changpeng Zhao, and Nest Exchange, seeking at least £150 million (roughly $200 million) in damages. The core allegation: Binance knowingly sold complex, high-risk crypto derivatives to retail customers in the UK without ever getting a green light from the Financial Conduct Authority.
The products in question include leveraged instruments, futures, and options, the kind of financial tools that can amplify gains but also vaporize portfolios in minutes. Many claimants say they suffered losses in the tens of thousands of pounds.
What the lawsuit actually claims
The claimants argue that Binance violated the Financial Services and Markets Act by offering unapproved derivatives starting in late 2019. The FCA enacted a complete ban on the sale and marketing of crypto derivatives to retail customers in January 2021. That means the alleged conduct stretches from late 2019 through the period when regulators were actively moving to shut down exactly these types of offerings.
The defendants named in the filing include Binance Holdings Ltd., which is registered in the Cayman Islands, along with Nest Exchange based in the UAE, Zhao personally, and unnamed additional persons.
