Almost 1,700 British investors have filed a lawsuit seeking at least £150 million ($199 million) against Binance and founder Changpeng Zhao in London’s High Court, alleging the exchange unlawfully sold risky crypto derivatives to UK retail users.
What the $199 Million Binance Lawsuit Claims
The case, filed on June 30, 2026, names Binance Holdings, Nest Exchange, Zhao, and “persons unknown” operating the Binance Trading Platform as defendants. The claimants allege Binance made leveraged products available to UK users from late 2019 and promoted them in breach of the Financial Services and Markets Act. For related coverage, see OpenGradient (OPG) Added to Binance HODLer Airdrops.
The products at issue include leveraged tokens, futures contracts, and options. According to earlier coverage of the filing, spot-product losses are excluded from the claim, narrowing the case to derivatives the claimants say should never have been offered to them.
KP Law partner Hannah Sharp, representing the claimants, said the case involves real financial harm to ordinary savers.
“Our clients are ordinary people, many of whom committed significant savings and who have suffered real financial harm.”
— Hannah Sharp, KP Law partner (Finextra)
Why the Reported $199 Million Figure Matters
The £150 million claim represents a first tranche, meaning total claims could grow as more investors join. The figure converts to roughly $199 million using the exchange rate reported in Reuters coverage ($1 = £0.7544).
The lawsuit’s scale reflects a broader UK regulatory posture toward crypto derivatives. The Financial Conduct Authority banned the sale of crypto-derivatives to retail consumers from January 6, 2021, estimating the ban would save retail consumers around £53 million.
Separately, the FCA warned in 2021 that Binance Markets Limited was not permitted to undertake regulated activity in the UK. By June 2023, the regulator confirmed no Binance Group entity held UK authorisation or registration to conduct regulated business. This timeline is central to the claimants’ argument that Binance operated without proper licensing while marketing risky products to British users.
The suit arrives during a period of heightened market anxiety. The Binance platform itself scheduled a COIN-M system upgrade for the same day the claim was filed, and BNB traded at $544.11 with a market cap of roughly $73.4 billion at the time.
What Crypto Readers Should Watch Next
The immediate next step is Binance’s formal response to the High Court claim. The exchange has previously denied wrongdoing in similar regulatory disputes, and any public statement or filing will shape how the market interprets the case’s strength.
Readers should also monitor whether the claimant pool expands beyond the initial 1,700 investors. KP Law’s framing of the £150 million as a minimum suggests additional tranches are anticipated, which could increase the total exposure significantly.
Court scheduling, any early procedural rulings on jurisdiction, and whether the case prompts parallel FCA enforcement action are the concrete developments worth tracking. This lawsuit joins a growing list of legal actions across the crypto industry that could set precedent for how exchanges are held accountable for product distribution in regulated markets.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
