Nearly 1,700 UK investors filed a lawsuit against Binance, its founder Zhao Changpeng, and related entities in the UK High Court in late June 2026, seeking at least £150 million (about US$200 million) in damages. They allege Binance sold complex, high-risk crypto derivative products without regulatory approval starting in late 2019, violating UK financial laws [1, 2, 3].
The investors claim Binance promoted leveraged crypto derivatives to UK retail customers, breaking the Financial Services and Markets Act and FCA regulations. The UK Financial Conduct Authority banned crypto firms from offering derivatives to retail clients in 2021 [1, 2, 3].
Defendants include Binance Holdings (Cayman Islands), Nest Exchange (UAE), Zhao Changpeng personally, and unnamed Binance platform operators. Binance’s main operating license is from the UAE. A recent bid to gain a Greek license was abandoned in August 2026 [2].
Binance has taken steps to restrict UK access to these derivatives by requiring additional user information but denies any wrongdoing. A Binance spokesperson said the company "remains committed to its obligations to users and to operating in accordance with applicable law" [1, 2].
The investors’ lawyer said their clients are "ordinary people, many of whom committed significant savings and who have suffered real financial harm," adding, "We are determined to hold Binance and its founder, Changpeng Zhao, to account. Cryptocurrency markets have, for too long, operated in a space where consumers have had limited recourse when things go wrong" [3].
The case highlights enforcement of the FCA’s 2021 ban against crypto derivatives for retail UK customers. The High Court will now consider whether Binance’s past actions breached UK law. The next significant procedural hearings are expected later this year.
