A former investor has sued the cryptocurrency exchange BitMEX for £20m, alleging the platform mis-sold derivative products to UK-based customers without the approval or regulation of the Financial Conduct Authority (FCA).
Lewis Barber, identified in court papers as a software engineer and former BitMEX investor, claims the exchange offered crypto derivative products to investors in the United Kingdom despite not being authorised by the FCA to do so. The legal action seeks £20m in damages related to those transactions.
BitMEX was founded by Ben Delo, a prominent donor to the Reform UK party who has been described in media reports as a billionaire. The claim centers on the allegation that the company carried out regulated activity in the UK without the necessary FCA oversight or approval.
The case highlights wider tensions between cryptocurrency exchanges and UK regulators. The FCA oversees the promotion and distribution of many financial products, including derivatives, and has repeatedly warned that some crypto products carry high risk for retail investors. Regulators have been increasingly active in scrutinising whether digital-asset platforms comply with existing financial rules.
It was not immediately clear from the available information whether BitMEX or Ben Delo had responded to the claim. The outcome of the litigation could have implications for how overseas crypto exchanges market derivative products to UK clients and for enforcement of FCA rules in the sector.