Billionaire Reform donor Ben Delo's former crypto firm sued for millions in UK

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Key takeaways

Software engineer Lewis Barber is suing BitMEX for over £10 million in the UK High Court.
The lawsuit claims BitMEX operated without Financial Conduct Authority authorization between 2018 and 2022.
BitMEX stated that no such claim has been served on its holding company, HDR Global Trading Limited.

Billionaire Reform donor Ben Delo’s former crypto firm is being sued by an investor for more than £10million over claims it unlawfully sold bitcoin bets to UK customers.

Lewis Barber, a software engineer from Chelford, Cheshire, has lodged proceedings at the High Court in London against BitMEX, which was co-founded by Delo. Reform’s leader, Nigel Farage, has pledged to back deregulation of the crypto industry, and his party received £36m from the tycoon last month.

High court proceedings

Documents filed at the High Court reveal Mr Barber claims he opened five accounts with the firm between 2018 and 2022 when it should not have taken his business. The claim form states: “At no material time was the Defendant authorised by the Financial Conduct Authority to carry out regulated activities in the United Kingdom.”

It adds that by promoting and carrying out the transactions in the UK it had acted in breach of the law. Mr Barber is seeking compensation “as a consequence of deceit and/or negligent misrepresentation and/or mistake,” the papers state. He is demanding 324.84 Bitcoin “and/or damages and interest”. The form states: “The Claimant expects to recover more than £10,000,000.”

The action is against BitMEX’s holding company HDR Global Trading Ltd, and does not name individual executives.

Legal perspective and industry impact

Gareth Keillor, Partner at Seladore Legal, said: “This is a substantial claim concerning losses sustained by Lewis over a number of years. Lewis’ case is that BitMEX entered into these transactions without the authorisation required under UK law, and that the Financial Services and Markets Act therefore entitles him to recover the bitcoin he lost, or equivalent damages.”

“The proceedings may also have wider relevance. Other UK-based persons may have entered into similar contracts with BitMEX, although whether any individual has a claim will depend on the particular facts and trading history.”

The financial regulator warned in March 2020 that BitMEX was not authorised in Britain and was suspected to be targeting UK consumers. Delo has said he is not supporting Reform for personal gain.

Background of the founders

Founded in 2014 under a holding company in the Seychelles, BitMEX was a successful partnership between bitcoin trader Arthur Hayes and British-born Delo. A third co-founder was Samuel Reed, a web developer. Delo stepped back from his executive position in October 2020.

Delo pleaded guilty in New York in 2022 to violating the Bank Secrecy Act by wilfully failing to establish and maintain an adequate anti-money laundering programme at BitMEX. He has always argued that the breach was a regulatory compliance lapse rather than any intentional wrongdoing. Delo agreed to a $10m (£7.5m) criminal fine and was sentenced to 30 months’ probation. In 2025 Donald Trump granted him a full presidential pardon.

Last month BitMEX voluntarily closed, following what it described as a strategic review of the business. The Daily Mirror has contacted Delo with details of the latest legal claim. A BitMEX spokespewrson said: “No such claim has been served on HDR Global Trading Limited.”

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