Key facts
- A UK software engineer is suing BitMEX operator HDR Global Trading for the return of 324.8 Bitcoin.
- The lawsuit alleges BitMEX traded regulated derivatives in the UK without authorization from the Financial Conduct Authority.
- The Bitcoin sought is valued at approximately $27.2 million.
- Lewis Barber entered into around 2,294 trades on the exchange between 2018 and 2022.
- Barber also claims damages for deceit, alleging BitMEX knew it was not authorized.
- BitMEX shut down on September 23.
A UK software engineer has initiated legal action in London's Commercial Court against HDR Global Trading, the operator of the now-defunct crypto derivatives exchange BitMEX. Lewis Barber is seeking the return of 324.8 Bitcoin, which he alleges the exchange traded with him in the UK without the necessary authorization from the Financial Conduct Authority (FCA).
The Bitcoin in question was valued at approximately $27.2 million based on Decrypt's calculation using exchange rates from the claim, or £20.4 million on October 1, according to the particulars of claim. Barber, a software engineer, reportedly entered into about 2,294 trades on BitMEX between 2018 and 2022 across five accounts, with 1,053 of these trades resulting in losses for him. These trades were all perpetual swaps, a type of derivative contract.
The claim argues that these activities constituted regulated actions for which BitMEX lacked authorization in the UK, making the trades unenforceable against Barber under the Financial Services and Markets Act 2000. Barber's legal team asserts that BitMEX did not restrict UK access, allowed users to select the UK as their country of residence, and conducted promotional activities in the country, including an advertisement in The Times in 2019. The claim also references a March 2020 warning from the FCA about BitMEX potentially trading regulated investments in the UK without authorization.
Furthermore, Barber alleges deceit, claiming BitMEX knew it lacked authorization when it implicitly represented its ability to lawfully trade with him. His solicitors reportedly sent a letter to BitMEX in December 2025 to rescind the trades. A spokesperson for BitMEX told The Guardian that no such claim has been served on HDR Global Trading Limited.
BitMEX ceased operations on September 23, having announced its closure in July. The exchange has faced other legal challenges, including a proposed class action in New York alleging theft and insider trading, and its co-founders and the entity itself have previously pleaded guilty to Bank Secrecy Act violations related to anti-money laundering failures.