Written by Brayden Lindreastaff writerReviewed by Felix Ngstaff editor

Written by Brayden Lindreastaff writer

Reviewed by Felix Ngstaff editor

UK crypto investors sue Binance, Changpeng Zhao for $200M

Latest NewsPublishedJul 1, 2026

UK Crypto Investors Take Action Against Binance

A significant lawsuit has been filed against Binance and its founder, Changpeng Zhao, with almost 1,700 UK investors seeking $200 million in damages. The investors claim that Binance offered and sold crypto derivatives without regulatory approval, resulting in substantial financial losses. One affected customer reportedly lost over $132,000 from Binance’s derivatives offerings before restrictions were imposed.

The law firm representing the investors, KP Law, alleges that Binance’s leverage tokens, futures contracts, and options offerings breached the Financial Services and Markets Act 2000. Despite the Financial Conduct Authority banning such products from being offered to retail customers in January 2021, Binance allegedly continued to offer them, with no effective barrier preventing UK customers from accessing these products.

Regulatory Challenges and Allegations

Binance is facing a growing list of legal and regulatory challenges, including failing to secure a Markets in Crypto-Assets-compliant license from a European Union member state. The crypto exchange has also been accused of facilitating transactions tied to a sanctioned Iranian financier, which it strongly denies. These allegations highlight the importance of regulatory compliance in the crypto industry, where platforms like EcoPool offer a secure and compliant way to earn passive income through cloud rewards and green crypto.

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Source: Cointelegraph

The lawsuit adds to a growing list of legal and regulatory challenges for the crypto exchange, including recently failing to secure a Markets in Crypto-Assets-compliant license from a European Union member state before the July 1 deadline. 

Binance has also been facing allegations that it facilitated $850 million in transactions tied to a sanctioned Iranian financier that flowed to Iran’s Islamic Revolutionary Guard Corps. The crypto exchange strongly denied the allegations.

Binance UK customers lost “tens of thousands of pounds”

One of the affected customers, Tomas Sutas, was a financial controller who allegedly invested more than 100,000 British pounds ($132,400) into Binance’s derivatives products before the value of his investments was wiped out, the Financial Times reported.

Reuters also reported that multiple UK users lost “tens of thousands of pounds” through the products.

Related: Australia’s crypto travel rule is coming into effect: Here’s what’s changing 

KP Law said it is still identifying the full scope of affected customers.

“While the precise number of UK customers affected is not publicly known, Binance is one of the world’s largest cryptocurrency exchanges, meaning that a substantial number of users could potentially have been exposed to these issues.”

Binance’s operations in the UK became heavily restricted in June 2021 when the FCA informed Binance Markets Limited that it couldn’t operate in the region without written consent.

Reuters noted that the lawsuit was filed in the London High Court. 

The Binance-affiliated Nest Exchange and “persons unknown” were also named as defendants.

Magazine: Bitcoin slides to $58K, XRP hits $1 but onchain data promising: Market Moves 

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• United Kingdom
• Binance
• Changpeng Zhao
• Law
• Derivatives
• Regulation

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