A British software engineer is suing HDR Global Trading, the company that ran the crypto derivatives exchange BitMEX, to get back about £20 million worth of bitcoin. He alleges BitMEX traded with him in the UK without the authorisation it needed from the Financial Conduct Authority (FCA).
The Guardian reported the claim on 14 October 2026. These are allegations only. The claim has been filed but has not yet been formally served on BitMEX, and none of it has been tested in court.
“No such claim has been served on HDR Global Trading Limited,” a BitMEX spokesperson told the Guardian.
What the claim says
According to the Guardian, Lewis Barber alleges he lost bitcoin worth £20 million trading BitMEX’s derivatives between 2018 and 2022. Derivatives here are bets on bitcoin’s price that can magnify gains and losses.
Decrypt, which reviewed the particulars of claim, reported that Barber is seeking the return of 324.8 bitcoin, worth £20.4 million on 1 October according to the claim, or about $27.2 million by Decrypt’s calculation. Decrypt said he made around 2,294 trades from five accounts and is challenging the 1,053 that lost him money, all of them perpetual swaps.
The legal argument
Barber’s case rests on the Financial Services and Markets Act 2000 (FSMA), the main UK law on financial services. Under it, firms must be authorised to carry out regulated activities in the UK.
The claim argues that BitMEX was not authorised, so the trades cannot be enforced against him and he is entitled to get back the bitcoin he lost, the Guardian reported. It says the FCA issued a warning “on or around 3 March 2020” that BitMEX “may have been conducting trading in regulated investments in the United Kingdom without FCA authorisation.”
Decrypt reported that Barber also claims damages for deceit, alleging BitMEX knew it was not authorised.
“Lewis’s case is that BitMEX entered into these transactions without the authorisation required under UK law, and that the Financial Services and Markets Act therefore entitles him to recover the bitcoin he lost, or equivalent damages,” said Gareth Keillor, a partner at Seladore Legal, which represents Barber.
Which court?
The two outlets describe the court differently. The Guardian says the claim was filed at the High Court. Decrypt says it is in London’s Commercial Court, which is a specialist court within the High Court.
Could others follow?
“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,” Keillor said. His firm claims the total bill for BitMEX could run into hundreds of millions of pounds if Barber wins.
BitMEX closed on 23 September 2026. In September, BitMEX co-founder Ben Delo gave Reform UK a record £36m donation, the Guardian has reported.
What this means
- This is a test of UK financial law against an offshore crypto exchange. If the court accepts the FSMA argument, other UK traders could bring similar claims.
- Nothing has been proven. The claim has not been served and BitMEX has not responded to its substance.
- The bigger numbers come from the claimant’s side. “Hundreds of millions” is his lawyers’ estimate.
Sources
- The Guardian, “Cryptocurrency exchange founded by Reform donor Ben Delo sued for £20m”, 14 October 2026. https://www.theguardian.com/politics/2026/oct/14/cryptocurrency-exchange-founded-by-reform-donor-ben-delo-sued-for-20m
- Decrypt, “BitMEX Sued in UK for Return of $27M in Bitcoin Over Unlicensed Derivatives”, 14 October 2026. https://decrypt.co/380904/bitmex-sued-in-uk-for-return-of-27m-in-bitcoin-over-unlicensed-derivatives
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