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UK Software Engineer Sues BitMEX for $27 Million Over Unlicensed Trading
A software engineer from the United Kingdom has initiated legal proceedings against HDR Global Trading Limited, the operator of the cryptocurrency exchange BitMEX, seeking the return of approximately £20 million, equivalent to about $27 million in Bitcoin. The claim, filed in London's High Court, centers on 1,053 losing perpetual swap trades executed on BitMEX between 2018 and 2022.
The claimant, Lewis Barber, argues that he should not have been permitted to trade on the platform due to BitMEX allegedly conducting regulated investment activities in the UK without the necessary authorization from the Financial Conduct Authority (FCA). Barber's legal team contends that if this claim is substantiated, the contracts involved would be deemed void, thereby entitling him to recover his losses. Additionally, the lawsuit accuses BitMEX of mis-selling the trades and engaging in deceitful practices.
This lawsuit comes shortly after BitMEX ceased trading operations on September 23, 2026, following a strategic review by its board. Barber's case is one of several legal challenges facing BitMEX, which also includes claims related to improper liquidations. Although BitMEX has not yet formally responded to the claim, Barber's legal team suggests that a successful outcome could pave the way for similar claims from other UK users, potentially exposing the company to liabilities in the hundreds of millions of pounds.
The regulatory history between BitMEX and UK authorities has been contentious, highlighted by a warning notice issued by the FCA in March 2020. Notably, the lawsuit does not name Ben Delo, a co-founder of BitMEX, as a defendant, focusing solely on the corporate entity HDR Global Trading Limited.
Source: KLEA News