Nearly 1,700 UK Investors Sue Binance and Changpeng Zhao for $200 Million Over Unregulated Derivatives

Almost 1,700 UK-based investors have filed a lawsuit against Binance and its founder Changpeng Zhao, seeking 150 million British pounds in damages. Law firm KP Law alleges Binance continued offering leverage tokens, futures contracts and options to retail customers after the Financial Conduct Authority banned such products in January 2021, breaching the Financial Services and Markets Act 2000.

Customers Report Devastating Losses

One affected investor, financial controller Tomas Sutas, reportedly lost over 100,000 British pounds through Binance’s derivatives products before their value was wiped out entirely. Multiple other users are said to have lost tens of thousands of pounds each. KP Law confirmed it is still identifying the full number of affected customers.

Binance Faces Mounting Legal Pressure

The lawsuit, filed in London High Court, also names Nest Exchange and unnamed defendants. It adds to a growing list of challenges for Binance, including failure to secure a MiCA compliant license before the EU’s July 1 deadline and separate allegations involving hundreds of millions in transactions tied to sanctioned Iranian entities, which Binance has strongly denied. Binance said it would contest the claims through proper legal channels.