BitMEX, founded by Ben Delo, faces £20 million lawsuit over alleged UK mis-selling

BitMEX, founded by billionaire Reform UK donor Ben Delo, faces a £20 million lawsuit over alleged mis-selling of financial products in the UK. Software engineer Lewis Barber alleges that BitMEX offered crypto derivatives to UK investors without Financial Conduct Authority (FCA) regulation or approval. Barber claims that Barber lost bitcoin worth £20 million between 2018 and 2022 through trading those derivatives. The derivatives amplified investors' gains or losses depending on changes in the cryptocurrency's value.

Barber filed the claim at the High Court against HDR Global Trading Limited, BitMEX's owner and operator. The claim has not yet been served on BitMEX. The claim contends that the Financial Services and Markets Act 2000 makes such contracts void and entitles consumers to restitution of bitcoin lost through those trades. Barber seeks the return of all bitcoin lost through trading with BitMEX, or damages for trades going back several years. A BitMEX spokesperson said no such claim had been served on HDR Global Trading Limited.

Barber's statement of claim says BitMEX conducted worldwide promotional campaigns without excluding the UK. The statement says HDR Global Trading Limited placed at least one advertisement promoting the company in the Times on 3 January 2019. The claim alleges that the financial products offered to Barber in the UK did not fall within the scope of UK financial services regulation. The claim says the FCA warned on or around 3 March 2020 that HDR Global Trading Limited may have traded regulated investments in the UK without authorization.

Barber's lawyers allege that Barber may be one of thousands of non-professional UK investors who suffered heavy losses from BitMEX derivatives sold in breach of FCA rules and consumer protection laws. Gareth Keillor, a partner at Seladore Legal, which represents Barber, described the case as a substantial claim concerning losses over several years. Keillor said Barber's case rests on allegedly unauthorized transactions and a statutory entitlement to recover lost bitcoin or equivalent damages. Keillor said other UK-based people may have entered similar contracts with BitMEX. However, Keillor said any individual's claim would depend on the particular facts and trading history. Barber's lawyers claim that a successful case could leave BitMEX facing a bill of hundreds of millions of pounds.

Details of the case emerged after BitMEX voluntarily closed on 23 September 2026 following what BitMEX described as a strategic business review. The Seychelles-based company faces several legal actions internationally. Investors in New York are suing BitMEX in a multimillion-dollar class action over alleged bitcoin theft and insider trading. Those claims have been vigorously denied.

Delo has attracted attention in Britain over a record-breaking £36 million donation to Reform UK. Delo wrote in the Daily Telegraph that Delo made the gift because Delo wanted a "fair fight and a level playing field".

Delo and co-founders Arthur Hayes and Samuel Reed pleaded guilty in the US in 2022 to Bank Secrecy Act charges involving alleged failures to comply with anti-money-laundering procedures. The co-founders were fined and given custodial sentences. Donald Trump pardoned the co-founders in March 2025. BitMEX pleaded guilty in 2024 to Bank Secrecy Act violations for failing to maintain adequate anti-money-laundering and know-your-customer programs. BitMEX was required in January 2025 to pay $100 million (£75 million) to the US Department of Justice.