Lewis Barber has filed a claim in the High Court against HDR Global Trading Limited, the company that owned and operated the BitMEX cryptocurrency derivatives exchange co-founded by Ben Delo, alleging that the firm sold crypto derivative products to investors in the United Kingdom without authorization from the Financial Conduct Authority.
The claim, reported by The Guardian on 14 October, has been filed but not yet served on the defendant. Barber, a software engineer, contends that under the Financial Services and Markets Act 2000 the contracts are void and that he is entitled to restitution of any bitcoin lost on those trades or equivalent damages.
He claims losses of bitcoin valued at about $26.5 million (£20 million) from trading derivatives on BitMEX between 2018 and 2022. The derivatives amplified gains or losses depending on the changing value of the underlying cryptocurrency.
Allegations of unauthorized promotional activity
Barber’s statement of claim alleges that BitMEX conducted promotional campaigns worldwide without excluding the United Kingdom and placed at least one advertisement in The Times on 3 January 2019 that promoted the exchange.
It states that the financial products offered to Barber in the United Kingdom did not fall within the scope of UK financial services regulation. The Financial Conduct Authority issued a warning on 3 March 2020 about potential unauthorized regulated investments in the UK connected to BitMEX.
Gareth Keillor, a partner at Seladore Legal representing Barber, told The Guardian: “This is a substantial claim concerning losses sustained by Lewis over a number of years. Lewis’s case is that BitMEX entered into these transactions without the authorization required under UK law, and that the Financial Services and Markets Act therefore entitles him to recover the bitcoin he lost or equivalent damages. The proceedings may also have wider relevance. Other UK-based persons may have entered into similar contracts with BitMEX, although whether any individual has a claim will depend on the particular facts and trading history.”
A BitMEX spokesperson said, “No such claim has been served on HDR Global Trading Limited.”
BitMEX closure and prior regulatory actions
HDR Global Trading Limited, the Seychelles-based owner and operator of BitMEX, closed the exchange voluntarily on 23 September 2026 after a strategic review. The platform was co-founded in 2014 by Delo, Arthur Hayes, and Samuel Reed.
BitMEX and its founders faced prior US regulatory actions. In 2022 Delo pleaded guilty to one count of violating the Bank Secrecy Act over the exchange’s failure to maintain adequate anti-money-laundering and know-your-customer controls. He received a fine and a probationary sentence. Donald Trump pardoned Delo, Hayes, and Reed in March 2025. BitMEX itself pleaded guilty in 2024 to Bank Secrecy Act violations and paid $100 million (£75 million) to the US Department of Justice in January 2025.
The Crypto Times reported in September that Delo and Christopher Harborne each donated £36 million (about $47.7 million) to Reform UK within 48 hours and noted Delo’s earlier US sentencing. A separate US class action filed in New York has named Delo, Hayes, and Reed in connection with alleged bitcoin retention and trading practices; the companies have denied those claims.
Context for UK investors and prior similar claims
Barber’s lawyers said the case may have wider relevance for other UK-based persons who traded similar products on BitMEX, though the outcome of any individual claim would depend on the specific facts and trading history.
The Crypto Times reported in July that nearly 1,700 UK investors had filed a High Court claim against Binance and Changpeng Zhao seeking about £150 million (about $199 million), alleging the sale of leveraged crypto derivatives without FCA authorization. That claim also rests on the argument that contracts entered without the required authorization may be unenforceable under UK law.
The High Court claim against HDR Global Trading has not yet been served. No hearing date has been set.
