Cryptocurrency exchange founded by Reform donor Ben Delo sued for £20m

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).

The claim filed at the high court but not yet served on BitMEX contends that under the Financial Services and Markets Act 2000 such contracts are void and that consumers are entitled to restitution of any bitcoin lost on those trades.

Barber claims that he lost bitcoin between 2018 and 2022 to the value of £20m through trading the derivatives offered by BitMEX, which amplified gains or losses for investors depending on the changing value of the cryptocurrency.

Barber’s lawyers allege he may be one of thousands of non-professional investors in the UK who sustained heavy losses after being sold derivative products by BitMEX in breach of FCA rules and consumer protection laws.

Barber’s claim is against HDR Global Trading Limited, the owner and operator of the BitMEX cryptocurrency derivatives exchange which has been shut down.