A cryptocurrency exchange co-founded by Reform UK donor Ben Delo is facing a £20m legal claim from a UK investor who says he lost bitcoin trading its derivatives products. Barber alleges that BitMEX offered the products to British customers without approval from the Financial Conduct Authority (FCA).

The claim was filed at the High Court but had not been served on BitMEX, according to The Guardian. Barber says he lost bitcoin worth £20m between 2018 and 2022 through the trades.

Details of the Claim

Barber's claim names HDR Global Trading Limited, the company that owns and operates BitMEX. He argues that contracts offered to UK consumers were void under the Financial Services and Markets Act 2000, because the products were not regulated or approved by the FCA. The FCA is the UK's conduct regulator for financial services, and the Financial Services and Markets Act 2000 sets out the authorization regime under which firms generally need approval to offer regulated products to British retail customers.

The products in question were crypto derivatives, which amplified investors' gains or losses as cryptocurrency values changed. Such leveraged products have drawn regulatory scrutiny: the FCA banned their sale to UK retail consumers from January 2021, citing consumer-protection concerns. Barber is seeking the return of the bitcoin he says he lost, or equivalent damages, for trades carried out over several years.

His lawyers say he may be one of thousands of non-professional UK investors who suffered heavy losses after BitMEX sold derivative products in breach of FCA rules and consumer protection laws. That assertion is an allegation within the claim, not a finding by a court.

BitMEX Says the Claim Has Not Been Served

In response to the filing, BitMEX said: “No such claim has been served on HDR Global Trading Limited.”

Service is the formal step of delivering court proceedings to a defendant, and a defendant is generally not required to respond until it has been served. The next steps in the case include whether the claim is served on HDR Global Trading Limited and, if it is, how the company answers it.

Barber's statement of claim says the exchange ran worldwide promotional campaigns that did not exclude the UK. The filing also cites an advertisement published in The Times on 3 January 2019.

Gareth Keillor, a partner at Seladore Legal, which represents Barber, described the case as substantial and said it concerns losses sustained over a number of years. Keillor said the case could have wider relevance because other UK-based individuals may have entered similar contracts, though whether any other person has a claim would depend on that person's individual facts and trading history. The claim's possible effect on other investors therefore remains conditional on the outcome of the case and individual circumstances.

Barber's lawyers say the case concerns whether BitMEX entered into the transactions without the authorization required under UK law. Their filing cites an FCA warning issued on or around 3 March 2020 stating that BitMEX may have traded regulated investments in the UK without authorization. The claim therefore raises the question of how UK authorization and consumer-protection rules applied to an offshore-incorporated exchange selling derivatives to British retail customers during the period covered by the filing.

Exchange Closed in September 2026

The Seychelles-based company voluntarily closed on 23 September 2026 following what it described as a strategic review, The Guardian reported. The outlet also reported separate legal actions involving BitMEX: in New York, investors are suing the exchange in a multimillion-dollar class action over alleged bitcoin theft and insider trading, claims that have been vigorously denied.

The Guardian reported that Delo and BitMEX cofounders Arthur Hayes and Samuel Reed pleaded guilty in 2022 to US charges involving violations of the Bank Secrecy Act, related to alleged failures to comply with anti-money-laundering procedures. They received non-custodial sentences and were pardoned by Donald Trump in March 2025.

BitMEX itself pleaded guilty in 2024 to Bank Secrecy Act violations involving inadequate anti-money-laundering and know-your-customer programmes. In January 2025, it was required to pay $100m (£75m) to the US Department of Justice.

Barber is seeking either the bitcoin he says he lost or damages. His lawyers say a successful claim could expose BitMEX to hundreds of millions of pounds in liability, though that estimate remains their own assertion.