BitMEX, a cryptocurrency exchange co-founded by billionaire Reform UK donor Ben Delo, is facing a £20m lawsuit in the UK. The claim alleges the company mis-sold financial products to investors.
Software engineer Lewis Barber claims BitMEX offered crypto derivative products in the UK without being regulated or approved by the Financial Conduct Authority (FCA). Barber alleges he lost bitcoin valued at £20m between 2018 and 2022 through trading these derivatives.
The claim, filed at the high court but not yet served on BitMEX, contends that such contracts are void under the Financial Services and Markets Act 2000. It argues that consumers are entitled to the restitution of any bitcoin lost on these trades. Barber's lawyers suggest he may be one of thousands of non-professional UK investors who sustained losses from BitMEX's derivative products.
HDR Global Trading Limited, the owner and operator of the now-closed BitMEX exchange, is the target of Barber's claim. A spokesperson for BitMEX stated that no such claim has been served on HDR Global Trading Limited.