{"id":74802,"date":"2026-07-01T11:15:37","date_gmt":"2026-07-01T11:15:37","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/binance-and-cz-sued-for-200-million-in-uk-over-unauthorized-derivatives-sold-to-1700-traders\/"},"modified":"2026-07-01T11:15:37","modified_gmt":"2026-07-01T11:15:37","slug":"binance-and-cz-sued-for-200-million-in-uk-over-unauthorized-derivatives-sold-to-1700-traders","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/binance-and-cz-sued-for-200-million-in-uk-over-unauthorized-derivatives-sold-to-1700-traders\/","title":{"rendered":"Binance and CZ Sued for $200 Million in UK Over &#8216;Unauthorized&#8217; Derivatives Sold to 1,700 Traders"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">About 1,700 UK investors are seeking \u00a3150 million from Binance and CZ over derivatives sold from late 2019, before the 2021 FCA ban.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Binance says it will defend the London High Court claim, which names entities in the Cayman Islands and the UAE.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">A ruling allowing the case to proceed could trigger further retail lawsuits against offshore exchanges in Britain.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>A Decade-Old Marketing Push Under Scrutiny<\/h2>\n<p>The claimants allege that Binance began marketing complex leveraged derivative products to UK retail investors in late 2019, roughly two years before the country\u2019s Financial Conduct Authority (FCA) formally restricted retail access to such products in 2021. The suit, first reported by the Financial Times, seeks at least \u00a3150 million in damages.<\/p>\n<figure id=\"attachment_827599\" aria-describedby=\"caption-attachment-827599\" style=\"width:1112px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-827599\" class=\"wp-caption-text\">Image source: X<\/figcaption><\/figure>\n<p>A Binance spokesperson said the exchange would defend the claims \u201cvigorously\u201d and reaffirmed its commitment to complying with applicable laws. It bears mentioning that the company has faced a long series of legal and regulatory challenges across multiple jurisdictions but has repeatedly said it has overhauled its compliance program.<\/p>\n<p>The High Court action names Binance Holdings Ltd, registered in the Cayman Islands, along with UAE-based entity <a href=\"https:\/\/www.scmp.com\/news\/article\/3358948\/uk-investors-sue-binance-and-founder-zhao-changpeng-us200-million\" target=\"_blank\" rel=\"noopener noreferrer\">Nest Exchange<\/a>, Zhao (widely known as CZ) and several unnamed individuals. The investors argue that the derivatives were unsuitable for retail traders and were sold without the regulatory approvals required in Britain.<\/p>\n<h2>CZ\u2019s Long Regulatory Shadow<\/h2>\n<p>The case revives legal pressure on a figure who has spent the past two years rebuilding his public image. As part of these efforts, Zhao first stepped down as Binance\u2019s chief executive in November 2023, following which he was part of a <a href=\"https:\/\/news.bitcoin.com\/binance-founder-cz-shares-untold-story-in-new-book-freedom-of-money\/\">$4.3 billion settlement<\/a> with U.S. authorities. He pleaded guilty to money-laundering and sanctions violations and then served four months in a U.S. federal prison.<\/p>\n<p>In October 2025, Zhao received a pardon from President Donald Trump. Since leaving day-to-day management (a role he has since <a href=\"https:\/\/news.bitcoin.com\/cz-rules-out-binance-ceo-return\/\">ruled out returning<\/a> to), he has advised roughly a dozen governments on <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> regulation and asset tokenization, launched the free education platform Giggle Academy, and continued backing startups through his investment firm YZi Labs.<\/p>\n<h2>What the Claim Could Mean<\/h2>\n<p>The UK case adds to a long list of actions Binance has confronted worldwide. A ruling that allows the claim to proceed could open the door to further retail lawsuits in Britain, where leveraged <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> derivatives remain banned for ordinary investors. Binance, now led by chief executive Richard Teng, has pointed to hundreds of millions of dollars in annual compliance spending as evidence of its reformed operations.<\/p>\n<p>The claimants\u2019 core argument is that the products were mis-sold years before the rules caught up, a timing question that could prove central to the case. Britain\u2019s derivatives ban for retail investors took effect in 2021, but the alleged marketing began well before it, when oversight of <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> trading was thinner.<\/p>\n<p>The coming few months will show how far UK courts are willing to hold offshore exchanges accountable for products sold to British retail traders before tangible regulations existed.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/binance-cz-uk-150-million-derivatives-lawsuit\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways About 1,700 UK investors are seeking \u00a3150 million from Binance and CZ over derivatives sold from late 2019, before the 2021 FCA ban. Binance says it will defend the London High Court claim, which names entities in the Cayman Islands and the UAE. A ruling allowing [&hellip;]<\/p>\n","protected":false},"author":3947362404,"featured_media":74803,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/74802"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362404"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=74802"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/74802\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/74803"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=74802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=74802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=74802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}