- Binance is seeking to dismiss a significant portion of a £10 billion lawsuit in London that accuses the exchange of anti-competitive behavior for delisting Bitcoin Satoshi Vision (BSV) in 2019, causing its value to drop.
- Kraken, also involved in the lawsuit, has dismissed the claims as baseless, while the case’s outcome could set a precedent for cryptocurrency listing practices.
In a high-stakes legal showdown, Binance is pushing to dismiss a substantial portion of a £10 billion ($12.8 billion) lawsuit in London that alleges the exchange engaged in anti-competitive behavior by delisting Bitcoin Satoshi Vision (BSV). This lawsuit, heard at London’s Competition Appeal Tribunal (CAT), involves over 200,000 BSV owners and other exchanges like Kraken.
Binance Seeks Dismissal of £10 Billion Lawsuit
The lawsuit, filed by BSV Claims, contends that Binance, Kraken, and other exchanges colluded to delist BSV in 2019. The plaintiffs argue this move caused a significant drop in BSV’s value and stymied its growth potential. They value the impact of this delisting at up to £9 billion, alleging that it prevented BSV from ascending to “top-tier” cryptocurrency status.
While the exchanges have not opposed the lawsuit’s certification under the UK’s collective proceedings regime, akin to the U.S. class action system, Binance is targeting the dismissal of claims related to BSV’s potential market position. Binance’s legal team, led by Brian Kennelly, asserts that those who retained BSV after the delisting made a voluntary choice. Kennelly argues these investors could have sold BSV and reinvested in comparable cryptocurrencies, thus this segment of the lawsuit should not proceed.
Kraken Labels BSV Lawsuit as Baseless
BSV Claims’ lawyers, however, insist that the entire issue should be tried comprehensively, maintaining that the delisting represented anti-competitive behavior that significantly impacted BSV’s market value and positioning. A spokesperson for Binance has declined to comment on the ongoing litigation, while a representative for Kraken has dismissed the lawsuit as “baseless.”
The exchanges’ decision to delist BSV in 2019 stemmed partly from claims made by Australian computer scientist Craig Wright, who asserted he was Satoshi Nakamoto, the pseudonymous inventor of Bitcoin. This year, in separate litigation, Wright was found to have lied and forged documents to support his claim to be Satoshi Nakamoto, further complicating the current legal landscape surrounding BSV.
The lawsuit’s resolution could have far-reaching implications for the cryptocurrency industry. If the exchanges are found guilty of anti-competitive practices, it could establish a significant precedent affecting how cryptocurrencies are listed and delisted on major platforms. This case not only spotlights the legal challenges within the crypto world but also underscores the volatile nature of cryptocurrency markets and the complex interplay of legal, technological, and financial factors influencing them.
