Binance Faces £150M UK Lawsuit Over Crypto Derivatives

Nearly 1,700 UK investors have taken Binance and its founder Changpeng Zhao to London's High Court over alleged losses tied to crypto derivatives. The claim seeks at least £150 million in damages from Binance entities, Zhao, and related defendants.

The lawsuit targets the exchange for allegedly offering complex products to everyday UK customers without regulatory approval under the Financial Services and Markets Act. Products named in the action include leveraged tokens, futures contracts, and options that can amplify losses when crypto prices move against traders.

The claim focuses on activity between late 2019 and around the period when the UK tightened rules on retail access to crypto-linked derivatives. Binance has said it plans to defend itself, but the filing does not establish liability and the allegations will need to be tested through the court process.