Regulation
Binance Fights to Reduce Size of $13 Billion UK Lawsuit Over BSV Delisting
Crypto exchange Binance has sought to dismiss most of a London lawsuit valued at up to £10 billion ($12.8 billion). The lawsuit claims Binance and other exchanges colluded to “delist” the Bitcoin Satoshi Vision (BSV) cryptocurrency. This case is being heard at London’s Competition Appeal Tribunal (CAT) and involves over 200,000 BSV owners.
Binance Seeks Dismissal of £10 Billion Lawsuit
The lawsuit, brought by BSV Claims, alleges that Binance, Kraken, and other exchanges engaged in anti-competitive behavior by delisting BSV in 2019. Lawyers for BSV Claims argue that this delisting caused BSV’s value to drop significantly. They also claim it prevented BSV from becoming a “top-tier” cryptocurrency, valuing this aspect of the claim at up to £9 billion.
The exchanges do not oppose the case’s certification under the UK’s collective proceedings regime, similar to the U.S. class action system. Certification would be the first step in the lawsuit. Binance, however, has requested the CAT to dismiss the part of the case concerning BSV’s alleged potential to become a significant cryptocurrency. This part of the case is for those who retained BSV after delisting it.
Kraken Calls BSV Lawsuit Baseless
Binance’s lawyer, Brian Kennelly, argued that those who kept BSV made “an entirely voluntary decision.” He said they “could reasonably have sold it and reinvested it in comparable cryptocurrency.” Kennelly further contended that this part of the lawsuit should not proceed.
BSV Claims’ lawyers, however, maintain that the issue should be tried in the same way as the rest of the case. They argue that the delisting was an anti-competitive behavior that affected the cryptocurrency’s market position and value.
A spokesperson for Binance declined to comment on the ongoing litigation. Meanwhile, a representative for Kraken described the lawsuit as “baseless.” The exchanges, including Binance and Kraken, removed BSV from their platforms in 2019. This decision was partly due to claims made by Australian computer scientist Craig Wright. Wright asserted that he was the pseudonymous inventor of Bitcoin, known as “Satoshi Nakamoto.”
Earlier this year, in separate litigation, Wright was found to have lied and forged documents to support his claim to be Satoshi Nakamoto. Wright has indicated that he will appeal against that ruling. This context adds complexity to the ongoing lawsuit involving BSV’s delisting.
The lawsuit’s outcome could have significant implications for the cryptocurrency market. If the exchanges are found guilty of anti-competitive behavior, it could set a precedent for how cryptocurrencies are listed and delisted on significant exchanges.
Also Read: Bank of Canada Slashes Interest Rate: Implications For Bitcoin (BTC) Price
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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