1,692 UK investors sue Binance, CZ and Nest Exchange
1,692 UK investors filed a group claim in London alleging Binance, founder Changpeng ‘CZ’ Zhao and Nest Exchange sold unauthorised crypto derivatives to retail traders since 2019.
Nearly 1,700 UK retail investors have launched a group lawsuit in London's High Court accusing Binance, its founder Changpeng ‘CZ' Zhao and Abu Dhabi-based Nest Exchange of selling unauthorised crypto derivatives to UK consumers.
The claim form was filed on June 29 by law firm KP Law on behalf of 1,692 claimants led by Tomas Sutas. The filing alleges the defendants promoted and sold leveraged tokens, cryptocurrency futures, options and margin trading products to UK customers from about Sept. 13, 2019, without required regulatory approval.
The claimants argue the activity breached the Financial Services and Markets Act by carrying out regulated activity without authorisation. The filing also alleges separate breaches of the act’s rules on unauthorised financial promotions. The group seeks recovery of money and property paid, compensation for losses and interest under the Senior Courts Act 1981.
Court documents list Binance, Zhao and Nest Exchange as primary defendants. Binance Holdings and Zhao are named as accessory defendants, with a fourth defendant described as “Persons Unknown” to cover other entities that ran the trading platform. The claim form records damages “in excess of £200,000,” the threshold for the filing fee bracket; KP Law has said the group is pursuing more than £150 million in total.
A Binance spokesperson said strict compliance with UK rules is a top priority and the company intends to defend the claims through the appropriate legal process. The filing notes previous enforcement against Binance in the United States, including a 2023 guilty plea that resulted in about $4.3 billion in penalties and a four-month prison sentence for Zhao; Zhao was subsequently pardoned.
The lawsuit comes after Binance withdrew an application for a Greek licence under the EU's Markets in Crypto-Assets regime. Zhao described the application as compliant and close to approval before unspecified political interference.
The case will proceed in the High Court, where claimants will seek to recover funds and obtain compensation through the UK civil process.
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