Nearly 1,700 UK Investors Sue Binance and CZ for £150 Million Over Unauthorized Derivatives Sales

According to Reuters, nearly 1,700 UK investors filed a lawsuit against Binance and founder Changpeng Zhao (CZ) in London High Court, seeking at least £150 million in damages. The plaintiffs allege that Binance sold them high-risk leveraged products and complex derivatives without proper regulatory authorization from the UK Financial Conduct Authority since late 2019, violating the Financial Services and Markets Act. Some investors reported losses of tens of thousands of pounds.

Defendants include Binance Holdings (registered in the Cayman Islands), Nest Exchange (registered in the UAE), Zhao personally, and unnamed parties. Binance said it would defend the case actively but declined further comment. The FCA banned crypto firms from offering derivatives to retail customers in 2021.