Binance Faces £150M UK Lawsuit From 1,692 Retail Derivatives Traders

A group of 1,692 British retail investors has filed a group legal claim at the UK High Court against Binance and co-founder Changpeng Zhao, alleging the exchange sold unauthorised leveraged derivative products to UK clients during 2019 and 2020.

The claimants, represented by KP Law, argue the products qualify as "specified investments" under Financial Conduct Authority rules, requiring FCA authorisation or an exemption that Binance did not hold.

According to the claim, the exchange promoted the products through online materials, social media, and email marketing in breach of the Financial Services and Markets Act.

Hannah Sharp, partner at KP Law, described the claimants as “ordinary people, many of whom committed significant savings,” with some losses reaching “tens of thousands and in some cases millions of pounds.”

One named claimant, Tomas Sutas, invested over £100,000 before losing the position.

As of Monday’s filing, Binance had not acknowledged service of the claim.

In a statement, Binance said: “We do not comment on ongoing litigation. We will defend against these claims through the appropriate legal process in due course.”

Lawyers for the claimants are seeking up to £150 million.

The FCA banned the sale of crypto derivatives to UK retail clients in January 2021, but the activity covered by this claim predates that ban.

Binance previously pleaded guilty to US criminal charges in 2023 related to money laundering and sanctions violations, agreeing to pay over $4.3 billion in penalties.

Zhao resigned as CEO, pleaded guilty, and served four months in prison before receiving a presidential pardon.

The lawsuit follows Binance’s recent withdrawal of its MiCA licence application in Greece, as the exchange winds down parts of its EU business while seeking authorisation elsewhere in the bloc.

Separately, the FCA this week published its landmark rules for the UK’s crypto industry, continuing broader regulatory efforts to formalise oversight of digital assets.