Lost money when a crypto exchange was hacked, froze withdrawals or collapsed: can you claim?

The questions that decide a claim

• Which entity is your contract with, and which law and forum does it choose?
• What kind of loss: missing assets, or consequential loss caused by a suspension?
• Exclusion and limitation clauses, and whether they are fair and binding on a consumer.
• Jurisdiction: a consumer may sue in the UK where the trader directs activities to the UK (Civil Jurisdiction and Judgments Act 1982, section 15B).
• Arbitration: consumer arbitration clauses are unfair for claims up to £5,000 (Arbitration Act 1996, section 91).
• Insolvency: whether customer assets were segregated and held on trust.

Regulation

The FCA's full regime for cryptoasset firms starts on 25 October 2027. Until then, most crypto activity is outside the Financial Ombudsman Service and the Financial Services Compensation Scheme, so claims usually go through the courts or arbitration.

• The terms of use and any product-specific terms (futures, margin, earn products) in force at the time.
• Your account history, liquidation records and timestamps.
• Platform announcements about the incident and any compensation scheme.
• Evidence that the exchange marketed to UK users, if jurisdiction is disputed.

Check whether the exchange has announced a compensation or reimbursement process, and what it covers. Compare your loss to what is offered. Look for clauses on force majeure, security incidents and liquidation during outages. Consider whether many users suffered the same loss, which can make grouped claims practical.

1. Use the exchange's complaints and compensation process first, and keep copies.
2. Send a formal letter of claim setting out the loss and legal basis.
3. If unresolved, issue proceedings in the right forum, or start arbitration if the clause binds you.
4. In an insolvency, file a claim in the process and take advice on any proprietary claim to your assets.

• Screenshot and export everything now, before access or records change.
• Do not sign a release or accept compensation that waives other claims without advice.
• Note the time limits in the terms for raising complaints.

Send the platform name, your loss and how it happened, the value, and whether you are a consumer or a business.