Almost 1,700 investors are suing Binance and founder Changpeng Zhao in London High Court over alleged unauthorized derivatives sales, according to The Block.
The plaintiffs claim they purchased crypto derivatives through Binance without the required regulatory approvals. The UK Financial Conduct Authority banned Binance from offering certain derivatives products to retail customers in 2021, citing consumer protection concerns around leveraged and margin trading in crypto assets.
The lawsuit joins a long string of legal and regulatory headwinds for the exchange. Zhao pleaded guilty to money-laundering violations in November 2023 and agreed to a $4.3 billion settlement with US authorities. The FCA's ban preceded years of compliance friction across multiple jurisdictions, including earlier enforcement actions and fines.
The scale of the claimant group, numbering in the low thousands, signals organized legal action rather than scattered individual grievances. Class actions of this size typically pool resources and legal costs across affected parties, which can amplify pressure on defendants to settle or defend liability at trial.