Crypto exchange Binance has moved to dismiss significant portions of a lawsuit in London worth up to £10 billion ($12.8 billion). The case, which also implicates other major exchanges including Kraken, accuses these platforms of colluding to delist the Bitcoin Satoshi Vision (BSV) cryptocurrency in 2019, report Reuters.
The lawsuit, filed at London’s Competition Appeal Tribunal (CAT), represents over 200,000 BSV owners and is spearheaded by BSV Claims, a legal vehicle established specifically for this case.
Lawyers for BSV Claims argue that the coordinated delisting was an act of anti-competitive behavior that led to a sharp decline in BSV’s value, thereby preventing it from reaching the status of a “top tier” cryptocurrency. They estimate the damages related to this aspect of the claim to be as high as £9 billion.
The BSV Claims legal team asserts that the exchanges’ actions unjustly impacted BSV holders, contributing to the cryptocurrency’s loss of market potential.
While the exchanges are not opposing the certification of the case under the UK’s collective proceedings regime—a process comparable to the U.S. class action system—Binance has requested that the CAT dismiss the portion of the case concerning BSV’s potential to become a major cryptocurrency.
Brian Kennelly, representing Binance, argued that individuals who continued to hold BSV after its delisting did so voluntarily. He contended that these investors “could reasonably have sold it and reinvested in a comparable cryptocurrency.”
While Binance has refrained from commenting on the ongoing litigation, a spokesperson for Kraken dismissed the lawsuit as “baseless.” The exchanges initially delisted BSV in response to controversial claims by Australian computer scientist Craig Wright.
Wright, associated with BSV, has asserted that he is the pseudonymous inventor of Bitcoin, known as “Satoshi Nakamoto,” a claim that has been widely disputed within the cryptocurrency community.
BSV Claims’ lawyers maintain that the issues raised deserve to proceed to trial along with the rest of the case. As the lawsuit moves forward, the outcome could have significant implications for the cryptocurrency market, particularly concerning how exchanges handle the listing and delisting of digital assets.
The CAT’s decision on whether to dismiss parts of the case will be a crucial next step in this landmark legal dispute. As the proceedings unfold, the case will be closely watched by investors and legal experts alike, given its potential to set a precedent in the rapidly evolving world of cryptocurrency regulation and litigation.