Major Cryptocurrency Exchanges Face Legal Battle Over Bitcoin SV Delisting
The legal case involving the delisting of Bitcoin SV (BSV) includes companies behind major exchanges like Kraken, Shapeshift, and Bittylicious, alongside Binance, as defendants. According to a report by BitMEX Research, six entities associated with these exchanges appeared in court with their legal teams on June 5th, seeking to dismiss most claims in the British lawsuit concerning the BSV delisting.
Binance, during the hearing at the UK Court of Appeal, requested the dismissal of the claim that BSV had the potential to become a major cryptocurrency. Binance’s counsel, Brian Kennedy, argued that investors who held onto BSV during the delisting did so voluntarily and could have exchanged it for another asset.
While Binance and the other exchanges do not oppose the case proceeding under the UK’s group litigation order, which would bring the matter to trial, they are challenging the bulk of the claims. Binance’s request aims to dismiss most of the £10 billion ($12.8 billion) sought by the plaintiff, BSV Claims Ltd, reducing the demand by £9 billion ($11.5 billion).
Billions at Stake
The original claim by BSV Claims Ltd alleges that the exchanges conspired to harm BSV’s prospects and delisted it, partly through public communications on Twitter, now X. The delisting actions led to a sharp decline in BSV’s value, allegedly depriving investors of a fair opportunity to withdraw their investments, resulting in substantial financial losses.
The lawsuit contends that the exchanges’ actions violated the UK’s Competition Act of 1998, impacting 240,000 British investors. The delisting decisions in April 2019 came amid legal actions initiated by BSV’s leader, Craig Wright, who claims to be Satoshi Nakamoto, Bitcoin’s pseudonymous creator.
Reasons for Delisting
Each exchange delisted BSV in April 2019 amidst Craig Wright’s legal controversies. Binance provided general reasons for the delisting, but a day prior to the announcement, then-CEO Changpeng Zhao publicly questioned Wright’s claims. Shapeshift and Bittylicious followed suit, citing Binance’s influence and Zhao’s comments as factors in their decisions.
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Kraken stated that threats and legal actions from the BSV team prompted their delisting, with support from 70,000 users in a poll cited as evidence of the alleged conspiracy. This user backing is also referenced in the current lawsuit as proof of collusion among the exchanges.
Conclusion
The ongoing legal battle over the delisting of Bitcoin SV involves significant financial implications and highlights the complex interplay between cryptocurrency exchanges and regulatory frameworks. As the case progresses, it will shed light on the responsibilities and actions of exchanges in handling digital assets and the potential legal ramifications of their decisions.
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