TL;DR:
- A total of 1,692 British investors filed a joint lawsuit before the High Court in London.
- The claim demands a minimum compensation of 150 million British pounds, equivalent to $200 million.
- The UK financial regulator banned the sale of cryptocurrency derivatives to retail clients in January 2021.
At least 1,700 British investors filed a class-action lawsuit before the High Court in London against Binance and its co-founder Changpeng Zhao. The plaintiff group demands the amount of $200 million for losses suffered due to the trading of allegedly unauthorized derivative products. The case was officially filed on Tuesday, June 30.
The traders argue that Binance had promoted high-risk leveraged products since late 2019 without having the corresponding regulatory permissions. According to the report by the law firm KP Law, which represents those affected, many of the clients involved were everyday citizens who invested their life savings and suffered losses of tens of thousands of pounds.
Legal implications and the regulatory vacuum in the United Kingdom
The litigation reignites the debate over financial responsibility on unregulated platforms. Data from the Financial Conduct Authority (FCA) indicate that the retail crypto derivatives ban imposed in January 2021 aimed to save consumers about $70 million. The plaintiffs contend that the company bypassed these restrictions through intense advertising campaigns on social media and emails.
Under the UK Financial Services and Markets Act, agreements managed by firms without prior authorization can be declared void. The claimants’ lawyers suggest that this regulation would force the company to restore the entirety of the funds lost by users.
Binance already restructured its British operations in 2023 to attempt to comply with local financial promotion rules. The defense of free trade argues that users accepted the risks voluntarily. Conversely, the prosecution claims that an unauthorized entity lacks the right to protect itself under the principle of buyer beware.
The platform’s global regulatory front
The company assured that it will formally respond to the judicial process. A spokesperson for the firm told Reuters that the exchange will defend its stance and remains committed to operating within the framework of current laws.
This legal conflict coincides with a complex moment for the firm’s expansion on the European continent. The platform moved its main authorization base to the United Arab Emirates after its license applications in Greece failed to prosper during this month of June 2026.
It is worth remembering that the platform already faced similar charges in the past. The US Commodity Futures Trading Commission accused the firm and its founder in 2023 of operating an illegal derivatives market, which resulted in a plea agreement and a historic fine of $4.3 billion. The new lawsuit in London includes entities registered in the Cayman Islands and the United Arab Emirates, in addition to personally naming Changpeng Zhao.
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