Key Takeaways
- Lawyers argue the delisting stripped BSV ($42.50) of the opportunity to compete as a top-tier crypto and permanently limited its value.
- Binance removed BSV from its platform in April 2019, citing concerns over its creator, Craig Wright
Bitcoin SV (BSV) investors are attempting to revive a major legal claim against Binance, arguing in the UK Court of Appeal that the exchange’s 2019 decision to delist BSV led to lasting financial harm and suppressed the token’s market potential.
Their lawyers argue the delisting stripped BSV of the opportunity to compete as a top-tier crypto and permanently limited its value. They’re challenging a July 2024 ruling by the Competition Appeal Tribunal that dismissed the claim for “loss of chance”—a component that could have driven damages up to $13 billion.
At a hearing this week, attorney John Wardell KC emphasized that the damage continues years after the delisting, stating, “If it hadn’t been for the delisting, BSV would be a first-tier currency like Bitcoin.” Investors argue that Binance’s decision effectively blocked BSV’s access to major liquidity and visibility.
Binance removed BSV from its platform in April 2019, citing concerns over its creator, Craig Wright, and his widely contested claim to be Bitcoin’s anonymous founder, Satoshi Nakamoto. The move came after former Binance CEO Changpeng Zhao publicly warned Wright that continued claims would result in delisting.
The case is built on the idea that BSV was on a growth trajectory that was abruptly halted. The group believes that if BSV had remained listed, it could have seen price performance mirroring that of Bitcoin. They originally filed their complaint in 2022, estimating losses based on Bitcoin’s valuation in July of that year.
Binance has argued that investors had ample opportunity to mitigate their losses by trading BSV for other crypto assets after the delisting. The CAT sided with Binance last year, noting there was insufficient evidence that holders were unaware of the delisting or unable to react.
However, Wardell pushed back, telling the Court of Appeal that mitigation wasn’t possible for all investors. “There is no duty to mitigate if your damaged asset cannot generate sufficient funds,” he said, challenging the idea that investors could have easily shifted to alternatives.
In response, Counsel for Binance, Brian Kennelly KC, noted BSV remained tradable and liquid on other platforms. “BSV is and was, at all relevant times, a readily marketable asset,” he said.
BSV, a fork of Bitcoin Cash and an offshoot of the original Bitcoin blockchain, has seen declining relevance since the delisting. Following renewed attention to the lawsuit, the token’s price jumped about 15%, reaching $42. Investors hope to bring the “loss of chance” claim back into consideration when the case proceeds to trial