Binance and Changpeng Zhao face £150 million UK investor lawsuit

The lawsuit centers on the sale of leveraged tokens, futures contracts, and options. According to the claim, these financial instruments were made available to UK customers starting in late 2019, potentially violating the Financial Services and Markets Act. KP Law, the firm representing the investors, asserts that the action is specifically restricted to these derivative products and does not encompass losses incurred through standard spot crypto trading.

At the heart of the dispute is the UK Financial Conduct Authority’s January 2021 prohibition on the sale and marketing of crypto derivatives to retail consumers. The regulator deemed such products inherently unsuitable for retail participants due to extreme price volatility and the potential for rapid, significant financial loss. The lawsuit alleges that Binance continued to offer these restricted products even after the ban took effect, only later implementing measures to limit UK access.

Binance has signaled its intent to contest the litigation. A spokesperson maintained that the exchange remains committed to its legal obligations and operating in compliance with applicable law, though the company declined to provide further specifics on the active case. This London filing arrives as Binance navigates a tightening global regulatory landscape, following recent scrutiny in Australia and the collapse of licensing efforts in Greece.