UK Crypto Exchange Founder Faces £20m Claim Over Alleged Regulatory Breach
Key Summary
A UK cryptocurrency exchange founded by Ben Delo faces a £20m claim from a software engineer who alleges the company sold financial products to UK investors without approval from the Financial Conduct Authority. The claim argues that contracts made in breach of the Financial Services and Markets Act 2000 are void and that consumers can recover bitcoin lost through those trades.
Background
A cryptocurrency exchange founded by Reform UK donor Ben Delo faces a £20m claim from a UK software engineer who says he lost bitcoin trading its derivatives.
Lawsuit Details
Lewis Barber alleges BitMEX sold financial products to UK investors without approval from the Financial Conduct Authority (FCA).
Claim
Barber filed the claim at the high court, but it has not yet been served on HDR Global Trading Limited, BitMEX’s owner and operator.
Allegations
Barber says he lost bitcoin worth £20m through BitMEX derivatives between 2018 and 2022.
Defense
The company has not received the filing, according to its spokesperson.
Implications
A successful claim could leave the company facing hundreds of millions of pounds.
Background Context
The UK’s increasingly convoluted taxation environment has businesses bracing for the tax schedule and the potential for radical adjustments to their financial frameworks.
Regulatory Clarity
A prompt court ruling could provide much-needed clarity in the regulatory environment, but the stakes are high.