BitMEX Sued in UK for $27M Over Unlicensed Trading

What Is the $27 Million BitMEX Lawsuit About?

A British software engineer named Lewis Barber has taken legal action against HDR Global Trading, the operating company behind the cryptocurrency exchange BitMEX. In a claim filed in London's Commercial Court, Barber is demanding the return of 324.8 Bitcoin (BTCBTC-0.05%).

Based on exchange rates cited in court filings, that amount of Bitcoin was valued at roughly £20.4 million on October 1, which equals around $27.2 million. Barber argues that BitMEX was trading with him without the necessary authorization from the Financial Conduct Authority (FCA), the official financial regulator in the United Kingdom.

The Trades at the Center of the Dispute

According to the claim, Barber placed approximately 2,294 trades on BitMEX across five separate accounts between 2018 and 2022. Rather than challenging every transaction, his lawsuit specifically focuses on the 1,053 trades that resulted in financial losses.

All of these disputed transactions involved perpetual swaps. A perpetual swap is a specialized type of crypto derivative similar to a futures contract, but it has no set expiration date. This structure allows traders to hold leveraged positions for as long as they maintain enough funds.

Barber's legal team contends that executing these derivative trades was a regulated financial activity under the UK's Financial Services and Markets Act 2000. Because BitMEX lacked FCA authorization to offer these products to UK residents, Barber argues that none of those losing contracts can be legally enforced against him.

Did BitMEX Target UK Traders Without Approval?

The lawsuit points out several ways BitMEX actively engaged with the British market. The filings state that BitMEX did not block access from UK IP addresses and allowed new accounts to select the UK as their country of residence.

Furthermore, BitMEX ran global promotional campaigns, including a prominent advertisement published in The Times newspaper back in January 2019. The lawsuit also highlights a public warning issued by the FCA in March 2020, which alerted investors that BitMEX might be carrying out regulated activities in the UK without authorization.

Barber is also seeking damages for deceit. He claims BitMEX implicitly represented that it was legally allowed to trade with UK clients, even though it knew it lacked permission. His solicitors sent a formal letter to BitMEX rescinding the trades in December 2025.

While the claim has been filed in court, it has not yet been formally served on the exchange operator. A spokesperson for BitMEX confirmed to reporters that no such claim has been served on HDR Global Trading Limited so far.

Could Other UK Crypto Traders File Similar Claims?

This lawsuit could potentially open the doors for many other traders across the United Kingdom. Law firm Seladore Legal, which is representing Barber, indicated that the total financial liability for BitMEX could run into hundreds of millions of pounds if other investors step forward.

"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," said Gareth Keillor, a partner at Seladore Legal.

BitMEX's Closure and Broader Legal Issues

This legal action comes shortly after BitMEX officially shut down operations on September 23, following an earlier announcement in July that it would close.

The platform has also faced severe legal hurdles in the United States. In New York, BitMEX is involved in a proposed class-action lawsuit alleging Bitcoin theft and insider trading, which names co-founders Ben Delo, Arthur Hayes, and Samuel Reed.

In 2022, all three co-founders pleaded guilty to violating the U.S. Bank Secrecy Act (BSA) by failing to maintain adequate anti-money laundering controls at the exchange. President Donald Trump pardoned the trio in March 2025. Meanwhile, the BitMEX corporate entity pleaded guilty to BSA violations in 2024 and was ordered to pay a $100 million fine in January 2025.

In addition to these legal troubles, BitMEX co-founder Ben Delo made headlines in September after donating £36 million to the political party Reform UK, marking the largest single donation in British political history.

As regulatory scrutiny over past trading activities continues, traders should remain aware that crypto markets carry inherent price risks and regulatory uncertainties. Past performance of digital assets is no guarantee of future results. You can view historical price data and real-time market updates on Bitkub Market.