Why are UK investors suing Binance?

Nearly 1,700 UK investors are suing Binance over claims that the exchange unlawfully offered cryptocurrency derivatives to retail customers without the required regulatory approval. The claim seeks £150 million (US$200 million) in damages.

What does the lawsuit against Binance allege?

The lawsuit alleges Binance continued offering leverage tokens, futures and options to UK retail customers after the Financial Conduct Authority (FCA) banned the sale of crypto derivatives to retail investors in January 2021. The claim argues there were insufficient barriers preventing UK users from accessing the products.

How much are the UK investors seeking from Binance?

The claim against Binance seeks £150 million (US$200 million) in damages on behalf of almost 1,700 UK investors. KP Law said it is continuing to identify additional customers who may have been affected.

How has Binance responded to the UK lawsuit?

Binance said it will defend the allegations through the appropriate legal process. The company also said it remains committed to meeting its obligations to users and operating in accordance with applicable laws.

What other regulatory challenges is Binance facing?

Binance is also facing broader regulatory scrutiny, including failing to secure a Markets in Crypto-Assets (MiCA) licence before the 1 July deadline and separate allegations involving transactions linked to sanctioned Iranian entities. Binance has denied those allegations.

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UK investors sue Binance for US$200M

Written by Jon CuthbertPublished Jul 1, 2026, 3:05 AM

Nearly 1,700 UK investors have filed a £150 million (US$200 million) lawsuit against Binance and founder Changpeng Zhao over alleged unauthorised crypto derivatives sales.
The claim alleges Binance continued offering derivatives to UK retail customers after the Financial Conduct Authority banned the products in 2021.
Binance said it will defend the claims as the exchange continues to face regulatory scrutiny in multiple jurisdictions.

Binance and its founder Changpeng Zhao are facing a £150 million (US$200 million) lawsuit from almost 1,700 UK investors, who allege the exchange unlawfully offered cryptocurrency derivatives without the required regulatory approval.

The claim, filed in the London High Court, alleges Binance continued offering leverage tokens, futures and options to UK retail customers after the Financial Conduct Authority (FCA) prohibited the sale of crypto derivatives to retail investors in January 2021.

“There appeared to be no effective barrier preventing UK customers from accessing them,” said KP Law, the firm representing the claimants.

KP Law said one claimant allegedly lost more than £100,000 (US$132,400) trading Binance's derivatives products, while other investors reportedly lost tens of thousands of pounds before restrictions were introduced.

Binance said it would defend the allegations through the legal process and remains committed to complying with applicable laws, and as the company is privately held there was no share price reaction to report.

The lawsuit adds to Binance's broader regulatory challenges, including its failure to secure a Markets in Crypto-Assets (MiCA) licence from a European Union member state before the 1 July deadline and separate allegations relating to transactions involving sanctioned Iranian entities, which Binance has denied.

KP Law said it is continuing to identify potentially affected UK customers, while the lawsuit also names Nest Exchange, a Binance-affiliated entity, and additional unidentified defendants.