Nearly 1,700 British investors have filed a group lawsuit against Binance, its founder Changpeng “CZ” Zhao, and Abu Dhabi-based Nest Exchange at the High Court in London. According to the claim form filed on June 29, the exchange allegedly sold crypto derivative products to retail investors for years without obtaining regulatory approval.
The claim form, submitted by law firm KP Law on behalf of 1,692 claimants, including lead claimant Tomas Sutas, alleges that the defendants sold leveraged tokens, crypto futures, options, and margin trading products to British consumers from around September 13, 2019. The filing claims this violated the Financial Services and Markets Act.
What does the legal basis say?
The claim argues that the sales violated the general prohibition on carrying out regulated activities without authorization. It also alleges that the promotion of these products breached rules on unauthorized financial promotions.
The claimants are seeking the return of money and property they paid, as well as damages and interest under the Senior Courts Act 1981.
CZ and Binance Holdings are named as additional defendants in the case on the grounds that they allegedly acted in “common design” with the entities operating the platform. A fourth defendant, covering other entities that operated the Binance trading platform, is listed only as “Persons Unknown.”
The gap between the figures stands out
According to court documents, the amount claimed in the claim form is listed as “exceeding £200,000” ($264,900). This figure is actually the threshold that triggers a court fee of £10,067 when filing the case.
KP Law, however, told media outlets including Reuters that the group is seeking more than £150 million ($200 million) in total. That figure does not appear in the claim form itself.
In a statement, Binance said full compliance with UK regulations remains a priority for the company. A spokesperson said the exchange remains committed to its obligations to users and will defend itself against the allegations through the appropriate legal process when the time comes.
Past records add weight to the case
The lawsuit comes after Binance pleaded guilty in the United States in 2023 to anti-money laundering and sanctions violations. That case resulted in a $4.3 billion fine for the exchange and a four-month prison sentence for CZ. CZ was later pardoned by President Donald Trump.
The development also came just days after Binance withdrew its MiCA license application in Greece. In comments to The Block, CZ claimed the application had been “fully compliant” and close to approval before unnamed political forces intervened.
The case is still at an early stage. It is not yet clear when Binance will file its formal defense.
