OKX Chief Calls CZ a Disgrace as Binance Faces $200M Class Action in the UK

Binance, currently the largest cryptocurrency exchange in the world, along with its founder Changpeng Zhao — widely known as CZ — is now facing a major class action lawsuit filed in London. The legal action, brought forward by law firm KP Law on behalf of approximately 1,700 affected investors, centers on allegations that Binance unlawfully offered high-risk crypto derivatives to UK retail clients.

According to KP Law, Binance made these derivative products available to British consumers between 2019 and 2020 without obtaining prior authorization from the Financial Conduct Authority (FCA), the UK's primary financial regulator. The claimants argue that such products were entirely inappropriate for retail investors and were being sold outside any regulatory framework at the time. The total compensation sought by the plaintiffs amounts to $200 million.

A spokesperson for Binance confirmed that the exchange intends to defend itself against the claims and emphasized its commitment to operating within the boundaries of applicable regulations. This lawsuit represents another significant blow to Binance's regulatory standing, following the exchange's failure to secure approval under the European Union's MiCA (Markets in Crypto-Assets) regulatory regime.

Notably, the lawsuit arrives as the FCA is preparing a comprehensive risk-based regulatory framework for cryptocurrency markets, expected to be fully implemented by 2027. Under this forthcoming framework, users will have clearer pathways to pursue legal action against exchanges and their leadership in cases of corporate misconduct.

Meanwhile, despite the EU compliance setback, Binance has sought to reassure its European users, stating that customer assets remain secure, held on a one-to-one basis, with continued access to withdrawals and transfers where applicable.

The regulatory troubles surrounding Binance have also reignited a long-standing personal feud between CZ and Star Xu, the CEO of rival exchange OKX. Xu publicly criticized Binance's lack of transparency and accused the platform of engaging in predatory market behavior, pointing specifically to the market crash in October 2025 as evidence of the damage Binance's actions have caused to the broader crypto industry.

CZ responded by dismissing Xu's comments as stemming from jealousy. However, Xu fired back sharply, questioning what exactly there would be to envy — referencing CZ's criminal conviction and prison sentence, as well as the mass liquidations that wiped out billions of dollars in value and pushed the market into what many have described as a crypto winter.

Xu went further, stating publicly that he is not jealous of CZ but rather ashamed of him, also referencing alleged unethical behavior during their time together at OKCoin, where Xu served as CZ's supervisor before the two parted ways. It was after that split that CZ went on to found Binance, planting the seeds of a rivalry that has lasted for years.

As things stand, Binance faces mounting pressure on multiple fronts — regulatory scrutiny in the UK and EU, a $200 million legal claim from over a thousand investors, and a very public war of words with a top competitor. How the exchange manages these compounding challenges will be closely watched by the crypto community in the months ahead.