Lewis Barber is suing BitMEX for the return of $27M in Bitcoin, claiming unauthorized trading in the UK.
Summary
- Lewis Barber, a UK software engineer, is suing BitMEX for the return of 324.8 BTC, claiming unauthorized trading.
- The lawsuit, filed in London, alleges that BitMEX operated without Financial Conduct Authority approval.
- Other UK traders may join Barber, potentially increasing claims to hundreds of millions of pounds.
A software engineer from the UK, Lewis Barber, has initiated legal proceedings against BitMEX, the cryptocurrency derivatives exchange that ceased operations in September. Barber is seeking the return of 324.8 BTC, valued at approximately £20.4 million or $27.2 million as of October 1.
The lawsuit, lodged in London's Commercial Court, alleges that BitMEX conducted trades without the necessary authorization from the Financial Conduct Authority (FCA). Barber engaged in around 2,294 trades on the platform between 2018 and 2022, with the lawsuit focusing on the 1,053 trades that resulted in losses.
Barber's claim asserts that all transactions were perpetual swaps, a type of derivative that requires regulatory approval in the UK. He contends that none of the trades can be enforced against him under the Financial Services and Markets Act 2000, due to BitMEX’s lack of authorization.
The lawsuit highlights that BitMEX did not restrict access to UK users and actively promoted its services, including a notable advertisement in The Times in January 2019. Additionally, a warning from the FCA in March 2020 indicated that BitMEX may have been unlawfully trading regulated investments in the UK.
Barber also claims damages for deceit, alleging that BitMEX misrepresented its legal ability to trade with him. His legal team has formally rescinded the trades as of December 2025, although the claim has not yet been officially served on BitMEX, which has denied any knowledge of the lawsuit.
In addition to Barber's case, BitMEX is also facing a proposed class action in New York, which includes allegations of Bitcoin theft and insider trading against its co-founders. These individuals previously pleaded guilty to violations of the Bank Secrecy Act in 2022 and were later pardoned by former President Donald Trump.
BitMEX announced its closure on September 23, following a prior announcement in July. According to Barber’s legal representation, many other UK traders may have claims similar to his, potentially amounting to hundreds of millions of pounds in total.
