Nearly 1,700 UK investors sue Binance and CZ for $200M over unauthorized derivatives sold since 2019. Full case details here.
Nearly 1,700 British investors have taken Binance and its founder, Changpeng Zhao, to court. They are seeking at least £150 million, roughly $200 million, in damages.
The claimants say Binance sold them complex leveraged products without proper regulatory approval.
Some investors reported losses running into tens of thousands of pounds. The case now sits before London’s High Court.
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UK Investors Accuse Binance of Unauthorized Derivative Sales
The lawsuit centers on leveraged trading products that Binance allegedly promoted starting in late 2019. These products can multiply both gains and losses for traders who use them.
Investors claim Binance sold the derivatives without securing the required regulatory clearance in the UK.
The claim also alleges Binance broke rules under the Financial Services and Markets Act.
Britain’s Financial Conduct Authority banned crypto firms from offering derivatives to retail customers back in 2021. Binance later added extra verification steps for UK users trying to access those markets.
The case names several parties as defendants. These include Cayman Islands-based Binance Holdings, UAE-registered Nest Exchange, Zhao himself, and unnamed individuals tied to the platform’s operations.
Binance currently holds its main operating license in the UAE after an earlier bid for a Greek license fell apart this month.
Binance And CZ Hit With $200M UK Lawsuit
UK investors have filed a $200 million lawsuit against Binance and founder Changpeng Zhao over alleged sales of unapproved crypto derivatives.
Nearly 1,700 investors claim Binance offered leveraged products without proper regulatory… pic.twitter.com/5X0pSaBxry
— BSCN (@BSCNews) July 1, 2026
Binance Says It Will Defend the Claims
Binance confirmed it plans to contest the lawsuit through the legal process.
A company spokesperson said Binance intends to keep meeting its obligations to users while operating within the law. The exchange declined to share further comment on the ongoing litigation.
This is not the first time Binance has faced scrutiny from UK regulators over its retail-facing products.
The FCA’s 2021 derivatives ban pushed the exchange to tighten access controls for British customers. Whether those steps satisfied regulatory requirements now forms a central question in the case.
Binance Navigates MiCA Rollout Across the EU
Separate from the UK case, Binance is managing changes tied to the EU’s MiCA framework, which took effect this week.
The exchange told affected users their funds remain safe and held on a 1:1 basis. Binance said it would keep offering previously communicated options, including transfers and withdrawals, where applicable.
As MiCA-related changes take effect today in the EU, we want to reassure affected users that we remain committed to supporting you through this transition with clarity, care, and responsibility.
Your assets remain safe on Binance, held on a 1:1 basis, and affected users will… pic.twitter.com/nQTPWZITMm
— Binance (@binance) July 1, 2026
CEO Richard Teng addressed the transition directly on X. He said Binance is working with regulators to find the best path forward for impacted users.
Teng added that the company is reaching out to affected accounts individually with next steps and available options.
Binance said users with account-specific questions should contact its customer support team through official channels.
The exchange framed the MiCA shift as a period requiring clarity and continuity for its European user base. It did not specify how many users the transition affects.
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