Binance, the world’s newest crypto exchange, and its founder Changpeng Zhao (CZ) have been hit with a class-action lawsuit in London.
Binance offered UK consumers access to risky crypto derivatives, according to law firm KP Law, which represents nearly 1,700 victims. The firm claimed that the products were not suitable for retail investors and were not regulated at the time.
Investors alleged that Binance offered the products between 2019 and 2020 without prior regulatory green light from the watchdog Financial Conduct Authority (FCA). Alleged victims are demanding $200 million for the damages they suffered.
Interestingly, the class action comes at a time when the FCA is preparing to fully implement its risk-based solution. crypto framework The new regulatory framework allows affected users to sue an exchange and its executives for issues such as corporate misconduct.
However, a Binance spokesperson stated that the exchange is committed to doing business within the applicable rules and that the company will defend itself.
This is part of Binance’s growth regulatory winds Failed to obtain EU approval of MiCA.
OKX CEO says he’s ‘ashamed’ of CZ
Unfortunately, regulatory glitches have increased the personal feud between OKX CEO Star Xu and Binance’s CZ.
According to Xu, Binance’s regulatory issues support predatory actions that harm the market, citing the exchange’s lack of transparency and the market crash in October 2025 as an example.
In response, CZ denied the allegations, stating that Xu was just ‘jealous’ of him. However, Xu responded:
What are you jealous of? His time in prison as a convicted felon? Or was it October 11, when millions of crypto users were liquidated and billions of dollars were wiped out, plunging the entire industry into crypto winter?
He continued:
I don’t envy him. I am ashamed of him. I almost forgot about his unethical behavior during the OKCoin days.
Before they parted ways, Xu was once CZ’s boss, and CZ later created Binance. For this reason, the hostility between them has been going on for years.
All this aside, it remains to be seen how Binance will overcome ongoing regulatory hurdles in the EU and the UK.
With MiCA compliance now fully in place, Binance has reassured EU users that their funds are safe and ready to support them with transfers and withdrawals.
Your assets remain safe with Binance on a 1:1 basis and affected users will continue to have access to the options already communicated to them, including transfers and withdrawals where appropriate.
Final Summary
- Following the MiCA challenge, Binance is now facing another setback: a $200 million class action claim from 1,700 UK investors.
- OKX CEO says he is ‘ashamed’ of CZ for Binance’s lack of transparency and triggering October’s market crash.
