Binance, the world’s latest crypto exchange, and its founder, Changpeng Zhao (CZ), have been hit with a class action in London.
According to KP Law, the law firm representing about 1700 victims, Binance offered UK consumers access to risky crypto derivatives. The firm claimed the products were unsuitable for retail investors and unregulated at that time.
The investors alleged that Binance offered the products between 2019 and 2020 without prior regulatory greenlight from the watchdog Financial Conduct Authority (FCA). The alleged victims seek $200 million for damages incurred.
Interestingly, the class action lawsuit comes at a time when the FCA is gearing up for a full roll-out of its risk-based crypto framework from 2027. The new regulatory framework allows affected users to sue an exchange and its executives for issues like corporate misconduct.
However, a Binance spokesperson stated that the firm will defend itself, noting that the exchange is committed to conducting business within applicable rules.
This is part of Binance’s growing regulatory headwinds after failing to get the EU’s MiCA approval.
OKX CEO says he’s ‘ashamed’ of CZ
Unfortunately, the regulatory hiccups have escalated the personal beef between the OKX CEO Star Xu and Binance’s CZ.
For Xu, Binance’s regulatory woes underpinned the exchange’s lack of transparency and predatory moves that have been hurting the market, citing the October 2025 market crash.
In response, CZ dismissed the claims, noting that Xu is just ‘jealous’ of him. But Xu retorted that,
Jealous of what? His jail time as a convicted criminal? Or October 11, when millions of crypto users were liquidated, and billions of dollars were wiped out, pushing the entire industry into a crypto winter?
He continued,
I’m not jealous of him. I’m ashamed of him. I almost forgot his unethical conduct during the OKCoin days.
Xu was once CZ’s boss before they parted ways, and CZ later on created Binance. Hence, their feud has been going on for years.
That aside, it remains to be seen how Binance will navigate its ongoing regulatory hurdles across the EU and UK.
With MiCA compliance now fully in effect, Binance has assured EU users that their funds are safe and ready to support them with transfers and withdrawals.
Your assets remain safe on Binance, held 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 applicable.
Final Summary
- After the MiCA challenge, Binance is now facing another headwind: a $200M class lawsuit claim by 1,700 UK investors.
- OKX CEO said he’s ‘ashamed’ of CZ for Binance’s lack of transparency and triggering the October market crash.
