Regulation
Binance, ShapeShift, Kraken Refuse $9B Compensation For Bitcoin SV Delisting
The Competition Appeal Tribunal is currently hearing a high-stakes legal challenge brought by BSV Claims Ltd. The case is filed against several major cryptocurrency exchanges, including Binance, Kraken, and ShapeShift. The hearing, which began on June 5 under sunny skies in London, revolves around the 2019 delisting of Bitcoin SV (BSV).
Binance, Kraken, ShapeShift & Others Deny $9B Compensation
The BSV delisting followed controversial claims by Craig Steven Wright asserting that he is Satoshi Nakamoto, the pseudonymous creator of Bitcoin (BTC). Moreover, BSV Claims Ltd. is demanding a staggering $9 billion in compensation on behalf of BSV holders.
The plaintiffs argue that the delisting deprived Bitcoin SV investors of significant growth opportunities. In addition, the company alleges that the exchanges’ actions constituted collusion and unfairly influenced the market. This eventually resulted in substantial financial losses for BSV investors.
According to BSV Claims Ltd., the losses were calculated based on the performance of other cryptocurrencies between 2019 and 2024. Additionally, they suggested that BSV holders missed out on substantial gains they might have realized had BSV not been delisted.
The defendants, comprising Bittylicious Limited, Payward Limited (parent company of Kraken), ShapeShift Global Limited, Payward, Inc., ShapeShift AG, and Binance Europe Services Limited, have assembled formidable legal teams to contest the claims. They argue that BSV investors had ample opportunity to sell their tokens following the delisting announcements.
Furthermore, they argued that they could have reinvested in other cryptocurrencies, thereby mitigating any potential losses. In association, the defendants assert that BSV holders were not subject to any lock-ups that would have prevented them from selling their holdings. Therefore, should not be entitled to compensation for purported lost opportunities.
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BSV Claims Spotlights Twitter Polls
Central to BSV Claims Ltd.’s argument are the announcements made on social media, particularly Twitter (now X). They asserted that these posts indicated a coordinated effort among the exchanges to delist BSV. Additionally, the plaintiffs highlighted a poll conducted by Kraken on Twitter and Binance’s public statements as evidence of collusion.
The defendants, however, maintain that their decisions were independently made. Moreover, they noted that the announcements were based on each exchange’s assessment of BSV’s market viability and security concerns. Earlier, Wright’s Satoshi claims were deemed false by the court, which propelled BSV Claims Ltd. to take legal action against Binance and other exchanges.
Also Read: US Lawmakers Pressure Biden To Secure Binance Exec’s Return From Nigeria
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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