BitMEX Sued in UK Court Over 324 BTC in Unlicensed Derivatives

UK software engineer Lewis Barber has filed a lawsuit against the operator of crypto derivatives exchange BitMEX in London's Commercial Court, seeking the return of 324.8 Bitcoin. According to particulars of claim reviewed by Decrypt and initial reports from The Guardian, the claim alleges that BitMEX traded with Barber without authorization from the Financial Conduct Authority.

The disputed Bitcoin was valued at £20.4 million on October 1, representing approximately $27.2 million based on the claim's exchange rates. Barber entered into approximately 2,294 trades on the exchange across five accounts between 2018 and 2022, challenging 1,053 loss-making perpetual swap trades.

Unlicensed Derivative Contracts

The legal filing argues that all the contested trades were perpetual swaps—derivatives without an expiry date—constituting regulated activities that BitMEX was unauthorized to carry out in the UK. Consequently, the claim asserts that none of the contracts can be enforced against Barber under the Financial Services and Markets Act 2000.

The lawsuit accuses BitMEX of failing to restrict UK access, allowing users to select the UK as their country of residence, and running worldwide promotional campaigns. It also references a March 2020 warning from the FCA regarding BitMEX potentially trading regulated investments without authorization.

Potential Wider Claims

Barber also claims damages for deceit, alleging that BitMEX implicitly represented it could lawfully trade with him while knowing it lacked authorization. Solicitors representing Barber wrote to BitMEX in December 2025 to rescind the trades.

Law firm Seladore Legal stated that other UK-based traders may find themselves in a similar position, noting that total claims across affected users could reach hundreds of millions of pounds. A BitMEX spokesperson told The Guardian that no such claim had been formally served on operator HDR Global Trading Limited.

BitMEX shut down its operations on September 23 following an announced closure in July. The exchange and its co-founders previously faced US legal proceedings relating to Bank Secrecy Act violations.

Key facts

• Lewis Barber is suing BitMEX operator HDR Global Trading in London's Commercial Court for the return of 324.8 BTC.
• The claim challenges 1,053 loss-making perpetual swap trades executed between 2018 and 2022.
• The lawsuit alleges BitMEX operated in the UK without authorization from the Financial Conduct Authority.
• Seladore Legal estimates potential claims from other UK traders could reach hundreds of millions of pounds.