UK Software Engineer Sues BitMEX Operator for £20.4 Million Over Unauthorised Trades
A British software engineer is taking legal action against HDR Global Trading Limited, the operator of cryptocurrency exchange BitMEX, to recover 324.8 Bitcoin valued at roughly £20.4 million. The lawsuit targets 1,053 specific losing transactions placed across five accounts between 2018 and 2022, while leaving thousands of other trades on the platform unchallenged.
The legal claim relies on Section 26 of the Financial Services and Markets Act 2000, arguing that BitMEX offered perpetual swaps to United Kingdom residents without required regulatory authorisation. The court filing highlights that the exchange permitted users to select the UK as their country of residence, published advertising in a national newspaper, and was subject to an alert from the Financial Conduct Authority in March 2020.
Courts have not yet determined whether the statutory provisions cover selective losing trades or how much money could be returned. Judges also hold discretion under Section 28 of the act to enforce agreements or allow platforms to retain funds if deemed fair. Meanwhile, law firms are inviting other former clients to evaluate potential claims, following a similar mass lawsuit brought against rival exchange Binance.
Key points
- A UK trader is suing BitMEX operator HDR Global Trading Limited to recover 324.8 Bitcoin lost across 1,053 specific trades.
- The lawsuit asserts that BitMEX conducted unauthorised financial services activity in the United Kingdom between 2018 and 2022.
- The claimant is seeking repayment for losing transactions while leaving roughly 1,241 other trades on his account untouched.
- Courts have yet to rule on liability or determine whether UK financial regulation permits the selective recovery of losing trades.
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How we writeDisclaimerQuestions and answers
Why is a UK trader suing BitMEX?
The trader claims BitMEX operated in the UK without proper regulatory approval and is seeking the return of 324.8 Bitcoin lost on 1,053 trades under the Financial Services and Markets Act 2000.
Can traders selectively recover only losing crypto trades?
The court has not yet decided whether UK law allows a trader to seek repayment specifically for losing trades while leaving other transactions intact.
Has BitMEX been found liable in this lawsuit?
No court decision has been made yet on whether BitMEX breached UK authorisation rules or if any funds must be returned to the trader.