UK Investors Sue Binance Over Derivatives as Zhao Faces £200M Claim

Around 1,700 UK investors have filed a London High Court lawsuit seeking about £150 million (nearly $200 million) against Binance and founder Changpeng “CZ” Zhao. The case alleges the Binance derivatives lawsuit offered high-risk leveraged crypto products—leveraged tokens, futures, and options—to retail users without the required UK regulatory approval, even after the UK Financial Conduct Authority (FCA) ban that took effect in January 2021. Investors claim there was “no effective barrier” to access, and losses reportedly reached “tens of thousands of pounds” for multiple users, including one investor (Tomas Sutas) with a position allegedly wiped out after over £100,000. Binance says it will defend the claims and argues it has operated in line with applicable law. The lawsuit adds to broader compliance pressure. Reuters reports Binance withdrew its MiCA (Markets in Crypto Assets) application from Greece after it was expected to be denied, ahead of the July 1 deadline for MiCA authorization across EU member states. Separately, Binance has denied allegations that it helped facilitate $850 million in transactions linked to a sanctioned Iranian financier tied to the IRGC. For crypto traders, this Binance derivatives lawsuit raises exchange-compliance headline risk. In the short term, it can increase volatility and risk premia around derivatives markets and major venue sentiment; longer term, the outcome could shape how readily exchanges/offers are accessed by retail under UK/EU rules.