In another news today Bitcoin SV Investors Battle to Reinstate $13.3 Billion Claim Against Binance
Bitcoin SV (BSV) investors are seeking to revive a major claim in a UK class action lawsuit, arguing that Binance’s decision to delist the cryptocurrency in 2019 caused them to miss out on billions in potential gains.
Investors Pursue ‘Loss of Chance’ Claim
A group of Bitcoin SV investors have taken their case to the UK Court of Appeal, hoping to reinstate a claim that could see them pursue damages of over $13.3 billion.
The claim, known as the ‘forgone growth effect’, argues that Binance’s delisting of BSV in April 2019 robbed the cryptocurrency of its opportunity to grow into a leading digital asset.
Lawyers representing the investors argued on Thursday that the claim should be heard at trial, claiming the delisting caused a “permanent ongoing loss of value” for BSV holders.
“If it hadn’t been for the delisting, BSV would be a first-tier currency like Bitcoin,”said John Wardell KC, the lead counsel for the claimants.
It’s time again Bitcoin SV Investors Battle to Reinstate $13.3 Billion Claim Against Binance
Tribunal Previously Rejected the Claim : Bitcoin SV Investors Battle
In July 2024, the Competition Appeal Tribunal struck out the specific claim, stating that most investors could have avoided their losses by exchanging their BSV for other cryptocurrencies after the delisting.
The tribunal ruled that the market mitigation rule applied, suggesting that the majority of BSV holders were aware of the token’s removal and had ample opportunity to trade out of their positions.
At the time, the tribunal concluded:
“The evidence currently before us as to the extent to which any BSV holders could reasonably have remained sufficiently unaware so as to exclude the market mitigation rule is scant and high-level.”
Legal Arguments Continue
In court this week, lawyers for the BSV investors insisted the mitigation rule should not apply.
Wardell argued that because BSV’s value was already damaged by the delisting, it was impossible for investors to recover meaningful funds by trading it.
“There is no duty to mitigate if your damaged asset cannot generate sufficient funds,” he said.
On the other side, Brian Kennelly KC, representing Binance, urged the court to uphold the earlier decision, arguing that BSV remained a “readily marketable asset” at all relevant times.
A Landmark Case for UK Crypto Investors
The case is part of a wider class action against Binance, Kraken, ShapeShift, and Bittylicious, all of which delisted BSV between April and June 2019.
It marks the UK’s first collective legal action involving cryptocurrencies and competition law.
Filed by BSV Claims Limited, a special purpose vehicle directed by Lord Currie of Marylebone, the case represents approximately 243,000 UK-based Bitcoin SV investors who held the asset between April 2019 and July 2022.
A Controversial Backstory :Bitcoin SV Investors Battle
The lawsuit is further complicated by the involvement of Craig Wright, the creator of Bitcoin SV, who has falsely claimed to be Bitcoin’s inventor, Satoshi Nakamoto.
In 2023, the English High Court ruled that Wright was not Satoshi and had committed fraud in multiple countries, including the UK, USA, and Norway.
Ashley Fairbrother, a partner at law firm Edmonds Marshall McMahon, acknowledged the unusual nature of the case:
“If the BSV coin was created by a fraudster with a view to realizing the fruits of a fraud, it is easy to understand why the community took steps to delist BSV.”
He added that while lawsuits against crypto exchanges are possible in theory, they face “significant legal and practical hurdles”, especially as exchanges tighten compliance and regulatory procedures.
Fairbrother remained cautious about the claimants’ chances:
“The BSV investors are well-resourced and well-funded, but the natural consequence of them winning is that the court aids Craig Wright to some extent to realize some value from his fraudulent claims.”
What’s Next?
The UK Court of Appeal will now decide whether to allow the ‘forgone growth effect’ claim to proceed to trial.
If reinstated, it could open the door for one of the largest crypto-related damages claims in UK legal history.
Mr Author
Author is a renowned crypto writer and podcaster, active in the industry since 2019. Beyond his expertise in cryptocurrency, he has made notable appearances in various media outlets. He presented the BBC's "Big Dollar Giveaway" and the thought-provoking documentary "The Dead Are Not Dead" on BBC World Services. Additionally, Leinhardt has contributed to four international documentaries focused on OneCoin, showcasing his depth of knowledge in the crypto space. His diverse experiences and insights have solidified his position as a respected voice in the cryptocurrency community.
