BitMEX sued for £20m over unregulated UK crypto sales

Summarised from The Guardian's report · Updated 14 Oct, 03:08 · Archive

A cryptocurrency exchange founded by Reform donor Ben Delo faces a £20m lawsuit over allegedly selling unregulated products in the UK.

BitMEX, a cryptocurrency exchange founded by billionaire Reform UK donor Ben Delo, is being sued for £20m in the high court by former investor Lewis Barber. Barber, a software engineer, alleges that BitMEX offered crypto derivative products to investors in the UK despite not being regulated or approved by the Financial Conduct Authority (FCA). Under the Financial Services and Markets Act 2000, such unregulated contracts are void and consumers are entitled to restitution of losses, according to the claim.

Barber claims he lost £20m in bitcoin between 2018 and 2022 by trading the derivatives offered by BitMEX, which amplified gains or losses depending on cryptocurrency value changes. His lawyers allege he may be one of thousands of non-professional UK investors who sustained heavy losses after being sold derivative products in breach of FCA rules. The claim states that BitMEX conducted promotional campaigns worldwide and did not exclude the UK, including placing at least one advertisement in the Times on 3 January 2019. The lawsuit is against HDR Global Trading Limited, the owner and operator of BitMEX, which has since been shut down.

Read the report

• Cryptocurrency exchange founded by Reform donor Ben Delo sued for £20mFormer investor alleges BitMEX sold products in UK despite not being regulated by Financial Conduct Authority A cryptocurrency exchange founded by the billionaire Reform UK donor Ben Delo is being sued for £20m over claims that the company mis-sold financial products in the UK. Lewis Barber, who is a software engineer, alleges that BitMEX offered crypto derivative products to investors in the UK, despite not being regulated or approved to do so by the Financial Conduct Authority (FCA). Continue reading...The Guardian · 14 Oct, 00:01

In this story: Ben Delo · Lewis Barber · BitMEX · Financial Conduct Authority · Reform UK · United Kingdom

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