- In a significant legal battle, cryptocurrency exchange Binance seeks to dismiss the bulk of a £10 billion ($12.8 billion) lawsuit filed in London.
- The lawsuit accuses Binance and other exchanges of conspiring to delist Bitcoin Satoshi Vision (BSV), causing substantial financial harm to BSV holders.
- Binance’s legal team argues against the claims, stating that BSV holders had the option to sell their holdings and were not forcibly disadvantaged.
Binance and other major crypto exchanges face a £10 billion lawsuit for allegedly delisting BSV unfairly, causing massive financial damage to its investors.
BSV Delisting Controversy
The lawsuit, representing over 200,000 BSV coin holders, alleges that Binance and other exchanges engaged in anti-competitive behavior by delisting BSV in 2019. This action reportedly resulted in a sharp drop in the cryptocurrency’s value, preventing it from reaching its full potential as a significant player in the market. Legal representatives for BSV Claims, the entity pursuing the case, suggest that the delisting led to significant financial losses, culminating in the £9 billion claim.
While Binance has accepted the case’s certification under the UK’s collective proceedings regime, it urges the tribunal to throw out the part of the lawsuit claiming BSV had the potential to become a top-tier cryptocurrency. This segment represents those who chose to hold their BSV coins even after the delisting event.
Binance’s Legal Arguments
Brian Kennelly, representing Binance, contends that BSV holders made a voluntary decision to retain their holdings and had the option to divest and reinvest in other cryptocurrencies. Conversely, BSV Claims’ legal team insists that this issue should be examined in depth at trial, alongside the broader aspects of the case. Despite media inquiries, Binance has refrained from commenting on the ongoing litigation, while Kraken, another defendant, has dismissed the allegations as unfounded.
The impetus behind the delisting in 2019 was linked to claims made by Australian computer scientist Craig Wright, who has controversially claimed to be the creator of Bitcoin, Satoshi Nakamoto. In a separate legal matter earlier this year, Wright was found to have provided false information and forged documents related to his claim, although he is planning to appeal the decision.
Conclusion
The outcome of this lawsuit could have far-reaching implications for Binance, the other exchanges involved, and the broader cryptocurrency community. As the case unfolds, stakeholders will be paying close attention to the decisions and potential precedents set by the Competition Appeal Tribunal. Investors and market participants are keenly awaiting the tribunal’s ruling, which could influence the future regulatory landscape and operational practices within the crypto industry.
