Nearly 1,700 UK investors filed a lawsuit against Binance Holdings Limited, Nest Exchange Limited, founder Changpeng Zhao, and unidentified platform operators at London's High Court, seeking at least £150 million ($200 million) in damages, according to a claim form dated 29 June 2026 and led by claimant Tomas Sutas. The lawsuit alleges Binance sold leveraged tokens, cryptocurrency futures, options, and margin trading products to UK consumers from around 13 September 2019 without regulatory authorization under the Financial Services and Markets Act (FSMA). Filed by law firm KP Law, the claim argues these sales violated FSMA sections 19 and 21, which prohibit unauthorized firms from conducting regulated activities and promoting financial products in the UK. Britain's Financial Conduct Authority (FCA) banned the sale of crypto derivatives and exchange-traded notes to retail consumers in January 2021, but claimants say there appeared to be no effective barrier preventing UK customers from accessing these products. The lawsuit adds to Binance's mounting regulatory challenges in Europe, where the exchange suspended services in France, Italy, Poland, and Spain from July 1 after failing to secure a Markets in Crypto-Assets (MiCA) license.
Claimants Cite FSMA Violations in Unauthorized Derivatives Sales
The claimants anchor their case in FSMA's general prohibition, alleging the sale of crypto derivatives in the UK breached section 19 and their promotion breached section 21. Under that framework, agreements made by an unauthorised firm can be treated as unenforceable. The claimants rely on sections 26 and 30 to recover monies and property paid under each agreement, plus compensation for resulting losses, with interest sought under section 35A of the Senior Courts Act 1981. Zhao and Binance Holdings face the same relief as alleged accessories, with the claimants arguing they acted pursuant to a common design with the operator defendants. The claim advances primarily in the cryptocurrencies used for payment, and in pounds sterling as an alternative.
Lawsuit Covers Four Years of Alleged Unauthorized Activity
KP Law frames the harm as widespread and, in some cases, severe. Some claimants say they lost tens of thousands of pounds. The firm said there appeared to be no effective barrier preventing UK customers from accessing the products after the FCA banned the sale of crypto derivatives and exchange-traded notes to retail consumers in January 2021. The claim form names four defendants: Cayman Islands-registered Binance Holdings Limited, Abu Dhabi-registered Nest Exchange Limited, Zhao personally, and unidentified persons unknown operating the Binance trading platform. The alleged unauthorized activity spans from around 13 September 2019 to the present.
Binance Denies Wrongdoing and Commits to Legal Defense
Binance denied wrongdoing and said it will contest the claim. The exchange said it remains committed to its obligations to users and will defend itself through the appropriate legal process, while declining to comment further on the ongoing litigation.
Exchange Suspends EU Services After MiCA License Failure
Binance told customers in France, Italy, Poland, and Spain it would suspend services after failing to hold a MiCA licence by July 1, handing rivals Coinbase and OKX a window to court departing users with transfer bonuses. Zhao argued the exchange's withdrawn Greek application was close to approval before political pushback, describing the outcome as damaging for both Binance and Europe. That account followed reports that ECB President Christine Lagarde signalled to Greek officials that Binance was not welcome in Europe, a claim neither the ECB nor Greek authorities have publicly confirmed. Binance's European push has run alongside earlier scrutiny in its bid for a Greek base, where Wall Street Journal reporting cited internal investigators who allegedly flagged $1.7 billion in transfers involving Iranian and Russian actors, allegations the exchange disputed.
FAQ
What did nearly 1,700 UK investors allege in their lawsuit against Binance?
The investors alleged that Binance sold leveraged tokens, cryptocurrency futures, options, and margin trading products to UK consumers from around 13 September 2019 without regulatory authorization under the Financial Services and Markets Act (FSMA). The claim form dated 29 June 2026 seeks at least £150 million ($200 million) in damages and names Binance Holdings Limited, Nest Exchange Limited, Changpeng Zhao, and unidentified platform operators as defendants.
Why do the claimants say Binance violated UK financial regulations?
The claimants argue Binance breached FSMA sections 19 and 21 by conducting regulated activities and promoting financial products without authorization. Under FSMA's framework, agreements made by an unauthorised firm can be treated as unenforceable, allowing claimants to recover monies and property paid under each agreement, plus compensation for resulting losses.
What regulatory challenges is Binance facing in Europe?
Binance suspended services in France, Italy, Poland, and Spain from July 1 after failing to secure a Markets in Crypto-Assets (MiCA) license. Changpeng Zhao said the exchange's withdrawn Greek application was close to approval before political pushback, and reports indicated ECB President Christine Lagarde signalled to Greek officials that Binance was not welcome in Europe, though neither the ECB nor Greek authorities have publicly confirmed this claim.
