A cryptocurrency investor has filed a £20 million lawsuit against BitMEX, a derivatives exchange established by billionaire Reform UK donor Ben Delo, alleging the company mis-sold financial products in the United Kingdom. The claim, lodged at the High Court but not yet served on BitMEX, asserts that the exchange offered crypto derivative contracts without the required authorization from the Financial Conduct Authority (FCA).
Lewis Barber, a software engineer, contends he lost bitcoin worth £20 million between 2018 and 2022 through trading on BitMEX's platform, which enabled leveraged positions to amplify gains or losses. The legal action argues that these contracts fall outside the scope of regulated financial services under UK law, specifically the Financial Services and Markets Act 2000, rendering such agreements void and entitling investors to restitution.
Barber’s legal team suggests he may be among many non-professional investors who suffered significant losses after purchasing these products in contravention of FCA rules and consumer protection legislation. The claim is directed against HDR Global Trading Ltd, the owner of BitMEX, which voluntarily ceased operations on September 23 following a strategic business review.
The statement of claim details BitMEX’s global promotional efforts, including advertising in UK media such as The Times, and notes the FCA’s March 2020 warning that the company may have been conducting unauthorized regulated trading activities in the UK. BitMEX has denied receiving any formal claim, with a company spokesperson stating no such claim has been served on HDR Global Trading Ltd.
Lawyers representing Barber emphasized that the case centers on BitMEX’s alleged failure to obtain necessary UK authorizations, which Barber argues entitles him to recover lost funds or equivalent damages. They also indicated that similar claims might arise from other UK-based investors depending on their individual circumstances.
BitMEX, which is based in Seychelles, is concurrently facing multiple legal challenges internationally. In the United States, investors have initiated lawsuits accusing the company of bitcoin theft and insider trading, allegations that the company denies.
Founder Ben Delo gained public attention in the UK after donating a record £36 million to Reform UK, a contribution he described as supporting a fair political contest. Alongside co-founders Arthur Hayes and Samuel Reed, Delo pleaded guilty in 2022 to charges related to violations of the Bank Secrecy Act, specifically failing to implement adequate anti-money laundering controls. The trio received fines and prison sentences before being pardoned by former U.S. President Donald Trump in March 2023.
In 2024, BitMEX itself admitted guilt to Bank Secrecy Act violations concerning insufficient anti-money laundering and know-your-customer programs, agreeing to pay $100 million to the U.S. Department of Justice.
Should Barber’s claim succeed, his lawyers warn that financial liabilities for BitMEX could escalate into the hundreds of millions of pounds, considering the potential scale of affected investors and the extended timeframe of the alleged unauthorized trading activities.