Trader Sues BitMEX for More Than RM108 Million Over 1,053 Losing Trades

Lewis Barber, a software engineer, is seeking the return of 324.8 Bitcoin from HDR Global Trading Limited, the company that operated BitMEX. The cryptocurrency was valued at approximately £20.4 million (more than RM106 million) as of 1 October.

The dispute concerns 1,053 unsuccessful trades executed between 2018 and 2022 through five trading accounts. Barber reportedly completed approximately 2,294 transactions during that period, but his legal challenge focuses exclusively on trades that resulted in financial losses.

Contents

01

Regulatory Authorisation at Centre of Dispute

02

Could Other BitMEX Traders Pursue Similar Claims?

03

What Malaysian Cryptocurrency Traders Should Understand

Regulatory Authorisation at Centre of Dispute

Barber's legal argument centres on whether BitMEX possessed the necessary regulatory authorisation to offer perpetual cryptocurrency swaps to customers in the United Kingdom.

His claim relies on Section 26 of the Financial Services and Markets Act 2000, which provides circumstances under which customers may recover money or property transferred through agreements involving unauthorised regulated activities.

However, the legislation does not guarantee that every disputed transaction will be reversed. Under Section 28, courts may determine that enforcing an agreement or allowing a provider to retain transferred assets would be just and equitable.

Consequently, Barber must establish both the relevance of the authorisation requirements and the legal basis for recovering the disputed losses.

The Financial Conduct Authority previously issued a warning in March 2020 indicating that BitMEX might have been providing financial services in Britain without the required authorisation.

Could Other BitMEX Traders Pursue Similar Claims?

The proceedings could attract attention from other cryptocurrency investors who incurred losses while trading derivatives through platforms operating across international borders.

Barber's legal representatives, Seladore Legal, are examining potential claims from other former British BitMEX customers. The firm has invited interested traders to submit their circumstances for assessment, although no collective claim has been filed.

The dispute also emerges alongside separate proceedings involving Binance, where 1,692 traders have alleged that the cryptocurrency exchange offered derivatives without the necessary regulatory permission. Neither case has established legal liability against the exchanges concerned.

If Barber succeeds, the ruling could influence how investors and trading platforms assess the consequences of unauthorised financial activity. Nevertheless, the outcome will depend on the particular facts, applicable legislation and judicial interpretation.

What Malaysian Cryptocurrency Traders Should Understand

Malaysia's Securities Commission regulates recognised digital asset exchanges and maintains an Investor Alert List covering certain unauthorised entities and activities.

Investors using overseas platforms should recognise that access to a trading website does not necessarily establish that its services are authorised locally or that Malaysian regulatory protections apply.