Lewis Barber, a software engineer and former investor, has sued BitMEX for £20m, alleging the cryptocurrency exchange sold financial products to UK customers without regulatory approval.
BitMEX was founded by billionaire Ben Delo, a donor to Reform UK. Barber claims the exchange offered crypto derivative products to investors in the UK despite lacking authorization from the Financial Conduct Authority (FCA).
The lawsuit centers on whether BitMEX operated illegally in British markets. Under FCA rules, financial firms offering derivatives to UK customers must obtain prior approval. Barber's complaint suggests BitMEX conducted this business without such clearance.
The case raises questions about cryptocurrency platform compliance with UK financial regulation. The FCA has previously taken enforcement action against unregulated crypto firms operating in Britain. BitMEX's status as a major global exchange does not automatically exempt it from UK regulatory requirements if it actively solicits UK-based customers.
Delo's connection to Reform UK adds political context. The party has positioned itself as skeptical of financial regulation, though this lawsuit concerns existing FCA rules rather than proposed reforms.
The £20m claim represents Barber's alleged losses or damages from the alleged mis-sale. The case outcome could establish precedent for how UK courts assess whether foreign crypto exchanges have breached FCA requirements by offering products to British users.
No statement from BitMEX or Delo appears in the available source material.