Key Takeaways
- • BitMEX, the crypto trading platform co-founded by billionaire Ben Delo, faces new US court action filed 12 September 2026 alleging the company profited from the March 2020 "Black Thursday" cryptocurrency crash, with an estimated $12.3bn in trades on a single day while competitors suffered severe losses.
- • Ben Delo, who announced a £36m donation to Reform UK this month, previously pleaded guilty in 2022 to violating the Bank Secrecy Act for failing to implement adequate anti-money laundering controls at BitMEX; he was subsequently pardoned by President Trump.
- • UK financial regulators warned in March 2020 that BitMEX was not authorised in Britain and suspected the platform of targeting consumers, while company founders internally described their target market as "degenerate gamblers."
- • BitMEX accumulated an internal insurance fund worth approximately $3bn and is scheduled to close on 23 September 2026, marking the end of a platform that generated substantial fees and built Delo's fortune over more than a decade.
- • The legal action targets BitMEX's holding company and corporate entities but does not name individual executives or shareholders as defendants; the company denies wrongdoing and has dismissed the complaint as "opportunistic."
Summary
A cryptocurrency trading platform co-founded by billionaire Ben Delo faces significant legal exposure in the United States following court action filed 12 September 2026. The lawsuit focuses on BitMEX's trading activity during the dramatic cryptocurrency market decline of 12 March 2020—dubbed "Black Thursday"—when bitcoin plunged nearly 40% in the worst selloff seen in seven years, driven by the coronavirus pandemic's market shock.
While competitors and individual investors suffered substantial losses during the crash, BitMEX reportedly emerged virtually unscathed, processing an estimated $12.3bn in trades on a single day and allegedly converting the market crisis into a "profit centre." The legal action, filed against BitMEX's holding company and related corporate entities, alleges improper handling of client funds, with claims that balances were diverted to the platform's internal insurance fund. The company has denied all allegations, characterizing the complaint as false and opportunistic.
The timing of the litigation carries additional significance given Delo's recent public profile. This month, Delo announced a £36m donation to Reform UK, making substantial headlines in British political circles. However, his background presents considerable complications for such high-profile involvement in politics. In February 2022, Delo pleaded guilty in New York federal court to violating the Bank Secrecy Act, specifically for failing to implement adequate anti-money laundering controls at BitMEX. He subsequently received a presidential pardon from Trump.
British financial regulators had flagged BitMEX concerns as early as March 2020, warning that the platform was not authorised in the UK and suspected it of targeting consumers. Internal company communications revealed that founders explicitly described their target market as "degenerate gamblers." BitMEX operated with an accumulated internal insurance fund valued at approximately $3bn and is scheduled to cease operations on 23 September 2026, effectively ending a platform that generated substantial trading fees and wealth creation for its founders over more than a decade of operation.
While competitors and individual investors suffered substantial losses during the crash, BitMEX reportedly emerged virtually unscathed, processing an estimated $12.3bn in trades on a single day and allegedly converting the market crisis into a "profit centre." The legal action, filed against BitMEX's holding company and related corporate entities, alleges improper handling of client funds, with claims that balances were diverted to the platform's internal insurance fund. The company has denied all allegations, characterizing the complaint as false and opportunistic.
The timing of the litigation carries additional significance given Delo's recent public profile. This month, Delo announced a £36m donation to Reform UK, making substantial headlines in British political circles. However, his background presents considerable complications for such high-profile involvement in politics. In February 2022, Delo pleaded guilty in New York federal court to violating the Bank Secrecy Act, specifically for failing to implement adequate anti-money laundering controls at BitMEX. He subsequently received a presidential pardon from Trump.
British financial regulators had flagged BitMEX concerns as early as March 2020, warning that the platform was not authorised in the UK and suspected it of targeting consumers. Internal company communications revealed that founders explicitly described their target market as "degenerate gamblers." BitMEX operated with an accumulated internal insurance fund valued at approximately $3bn and is scheduled to cease operations on 23 September 2026, effectively ending a platform that generated substantial trading fees and wealth creation for its founders over more than a decade of operation.
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