Investors in Bitcoin SV are trying to resurrect a legal case from 2019 against Binance for removing the cryptocurrency from their platform. They argue that Binance’s decision led to a stagnation in the value of Bitcoin SV, which originated as a hard fork of Bitcoin Cash and ultimately stems from the original Bitcoin protocol.
As reported, the investors have requested that the UK Court of Appeal reconsider their assertion that the delisting led to substantial losses in potential gains for their investments. In July 2024, the Competition Appeal Tribunal dismissed part of their case when the Bitcoin SV investors claimed that Binance’s actions had a “forfeited growth impact,” preventing the token from potentially becoming one of the leading digital assets currently available in the marketplace.
Should this assertion be permitted to hold ground, the judiciary might rule that Binance would face the maximum conceivable fiscal sanction, exceeding $13 million, under the premise that Bitcoin SV could potentially reach the prominence that Bitcoin had attained by July 2022, at the time when the plaintiffs initially submitted their complaint.
Investors in Bitcoin SV aim to resurrect the legal case against Binance.
On last Thursday, during the hearing at the Court of Appeal, the lawyers representing the investors additionally contended that
court
attorneys should present the loss of opportunity claims for their clients when the case reaches the trial stage. They feel that being removed from exchanges has led to an irreversible decrease in value for their clients due to the hindered development of the token.
“Due to the delisting, harm has occurred and persists until now,” stated John Wardell KC, who represents the investors.
In its preliminary ruling in July 2024, the Competition Appeal Tribunal did not grant Binance’s petition to dismiss the case entirely. Nevertheless, the tribunal concurred with the exchange that the “mitigation of market impact” principle was applicable to the delisting. This implies that most Bitcoin SV holders were cognizant of the impending removal of BSV prior to the event and thus had sufficient time to swap their tokens for alternative cryptocurrencies.
“The evidence we presently have regarding how extensively BSV holders might have stayed adequately uninformed to disregard the market mitigation rule is minimal and general,” the tribunal’s judges determined back then. Nevertheless, the attorneys for
BSV
Some have contended this week that the market mitigation measures aren’t applicable here, as they claimed investors couldn’t dodge the loss by switching to different assets.
The BSV lawsuit has taken a new turn.
Binance’s attorneys have contested the arguments presented by the legal teams representing the investors.
Brian Kennelly KC from Blackstone Chambers questioned the Court of Appeal about BSV, stating, “It could have been swapped for Bitcoin or various other digital currencies.” He emphasized, “At all pertinent moments, BSV has always been a highly liquid asset,” without seeking to overturn their verdict made earlier in 2024 concerning what’s referred to as the forgone growth impact.
The legal challenge against Binance is included in a broader class-action lawsuit that also involves Kraken, Bittylicious, and ShapeShift—all of which removed the token from their platforms between April and June 2019. These allegations have been brought forth by BSV Claims Limited, an entity established specifically for this purpose with Lord Currie of Marylebone serving as its only director. Previously, Lord Currie held positions such as chairman at both the UK telecommunications authority Ofcom and the Competition and Markets Authority.
The registration of the case covers all Bitcoin SV holders within the UK from April 2019 through July 2022, with approximately 243,000 individuals involved as claimants. Ashley Fairbrother, who works for the law firm Edmonds Marshall McMahon as a partner, highlighted that this case stands out due to its unprecedented nature and also because it involves quite an unusual history.
“Last year, in an unprecedented legal situation, the English High Court ruled that Dr. Craig Wright was not Satoshi and concluded that he had carried out a fraudulent scheme affecting numerous individuals, businesses, as well as courts in England, Wales, Norway, and the USA,” he stated. As per Fairbrother, Wright utilized his
false claims
To sway investments into BSV, allowing him to benefit from the deceptions.
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