A software engineer in the United Kingdom has filed a lawsuit against HDR Global Trading, the operator of the now-defunct crypto derivatives exchange BitMEX, seeking the return of 324.8 BTC. The case, brought by Lewis Barber in London’s Commercial Court, centers on allegations that BitMEX entered into trades with him without the necessary authorization from the UK Financial Conduct Authority (FCA).
Exchange operations and regulatory questions
Barber’s claim states that between 2018 and 2022, he executed approximately 2,294 trades on BitMEX from five separate accounts, focusing on perpetual swaps, a type of crypto derivative. Out of these transactions, 1,053 resulted in losses. The claim argues that each of these transactions constituted a regulated activity that required FCA approval, which BitMEX allegedly lacked.
According to the particulars of the claim, as of October 1, the Bitcoin in question was valued at £20.4 million, equivalent to about $27.2 million. Barber’s legal team contends that these contracts are unenforceable under the Financial Services and Markets Act 2000 due to BitMEX’s lack of regulatory status in the UK.
The claim further notes BitMEX’s active approach to UK users, including allowing new sign-ups to select the UK as their residence and running international promotional campaigns. This included an advertisement in The Times in January 2019. It cites an FCA warning from March 2020 suggesting BitMEX may have operated without authorization in the UK market.
Barber is also pursuing damages for deceit, arguing that BitMEX implicitly misrepresented its legal standing. His solicitors notified BitMEX of the intent to rescind the trades in December 2025, according to the legal filing.
Barber’s lawyers believe that other UK traders who interacted with BitMEX under similar circumstances could have comparable claims, with potential liability running to hundreds of millions of pounds.
The legal action has been filed but not yet formally served on BitMEX. A spokesperson for HDR Global Trading said there has been no service of the claim on the company.
Further legal challenges and political links
BitMEX faces other legal troubles, including a proposed class action in New York alleging Bitcoin theft and insider trading. This suit names the exchange’s co-founders, Arthur Hayes, Ben Delo, and Samuel Reed.
All three co-founders admitted to Bank Secrecy Act violations in 2022, specifically for failing to implement an adequate anti-money laundering program. BitMEX itself pleaded guilty to similar violations in 2024 and was ordered to pay a $100 million penalty in January 2025.
In March 2025, President Donald Trump issued pardons for Hayes, Delo, and Reed. CNBC reported that each co-founder agreed to pay a $10 million fine as part of the settlement. Hayes publicly acknowledged the pardon on X.
Gareth Keillor, a partner at Seladore Legal, highlighted that additional UK-based individuals may have similar claims against BitMEX, though the validity of each would depend on particular trading histories and facts.
Separately, Ben Delo made headlines by donating £36 million to Reform UK, marking the largest single political donation in British history.
BitMEX winds down operations
BitMEX officially ceased its exchange services on September 23, following an announcement in July detailing its planned closure. The company confirmed the conclusion of all trading activity at 04:00 UTC on a Wednesday, after a two-month wind-down period.
While users can still access their accounts and withdraw funds, the exchange is no longer accepting new deposits or trade positions. BitMEX has stated that all customer funds are secure, encouraging users to remove any remaining balances as soon as possible.
In the context of ongoing legal and regulatory uncertainties, the case has underscored the significance of minimizing operational risks and closely monitoring changes in the crypto industry. In a market where a single Fed decision or a sudden altcoin listing can change everything in seconds, jumping between different apps for charts, news, and portfolio tracking is costing investors money. Smart traders are now utilizing privacy-first tools like CryptoAppsy to consolidate everything. Without even the hassle of creating an account, users gain access to real-time charts, smart price alerts, coin-specific news, and essential macro data all in one place.
