More than 1,000 people in England and Wales have joined a crypto class action against Binance and its founder Changpeng Zhao, marking the first such suit in the United Kingdom. The case now represents approximately 2,700 consumers globally, class action specialist firm KP Law said today.
The filing comes as the Financial Conduct Authority opened an authorisation gateway for a new crypto-asset regulatory regime aimed at safeguarding investors. Binance is expected to seek a licence under the framework, which will become effective on 25 October 2027.
The group claim, lodged in the High Court in June, represents traders who used the Binance.com platform for cryptocurrency derivative products. The exchange was founded in China in 2017. The value of claims issued to date is estimated to exceed £250 million.
Claimants allege that Binance offered high-risk, complex derivative and leveraged products to UK-based users without the required FCA authorisation. The instruments involved leverage, futures and options that let investors speculate on future cryptocurrency prices.
The lawsuit argues that these instruments qualify as “specified investments” under the Financial Services and Markets Act 2000 and therefore must be sold only by authorised entities. The platform, which serves over 300 million customers globally, allegedly made the products available to UK users from late 2019 to early 2020.
Many retail investors reported substantial losses, with some losing tens of thousands and others losing millions of pounds.
KP Law partner Hannah Sharp said, “It is public knowledge that Binance have failed to cooperate with regulators. That’s why their UK group company, Binance Markets Limited, was barred from regulated activity in the United Kingdom in 2021. Sadly, this prohibition did not stop Binance from selling our clients crypto derivative products we allege they were not at the time authorised to sell in this market.”
The group claim remains pending before the High Court, while the FCA continues to develop the licensing framework for crypto-asset firms.
