The United Kingdom’s Competition Appeal Tribunal is hearing a significant case about the delisting of Bitcoin SV (BSV). This case has been in the process for five years. Six exchanges are accused of causing $9 billion in missed opportunities for BSV holders due to their 2019 delisting decision.
On June 5, the tribunal started proceedings against these six exchanges. The defendants include some of the most well-known names in the crypto industry. These include Binance’s European branch, Binance Europe Services, Erik Voorhees’ ShapeShift, Kraken (represented by Payward), and the Bitcoin exchange Bittylicious, along with other associated entities.
The case is complex, with many lawyers involved. Each of the six defendants has its own legal team. This has resulted in an enormous amount of documentation for the tribunal to review. The tribunal estimated that the collective proceedings order (CPO) would take about three days to complete.
“Bitcoin Satoshi’s Vision,” or Bitcoin SV, is a blockchain and cryptocurrency. It emerged from a split with Bitcoin Cash (BCH) in 2018, led by Craig Wright. Wright is a controversial figure who claims to be Satoshi Nakamoto, Bitcoin’s anonymous creator. However, much of the crypto community opposes and considers his claim false.
The split that created Bitcoin SV was part of a larger battle within the Bitcoin Cash community. Different groups pushed their versions of the blockchain. Influential figures like Roger Ver companies like Bitmain and exchanges such as Binance and Coinbase supported another forked coin, Bitcoin ABC.
In April 2019, a major scandal unfolded when several exchanges, including Binance and Kraken, delisted Bitcoin SV. These exchanges did not provide clear reasons for their actions. Kraken, for instance, said BSV’s behavior was “completely antithetical” to
Kraken’s values and the broader crypto community. Kraken even conducted a poll on X (formerly Twitter), where the community suggested BSV was “toxic.” Similarly, Binance offered vague explanations, merely stating that BSV no longer met their standards.
Legal Battle Over BSV Delisting
The delisting of BSV by these major exchanges led to a $12 billion class action lawsuit in the UK in 2022. The plaintiffs, under the name BSV Claims, demanded compensation for the delisting. They argued that BSV holders missed significant growth opportunities. According to the plaintiffs, those who held BSV after the 2019 delistings are owed $9 billion in compensation for the potential financial gains they lost.
This case is pivotal for the crypto industry. It highlights the power and influence of major exchanges over the market and the potential repercussions of their decisions.
The tribunal’s outcome could set a precedent for how similar cases are handled in the future. It could significantly impact how exchanges approach the listing and delisting of cryptocurrencies.
As the tribunal continues its proceedings, the crypto world watches closely. The decision could have far-reaching implications, not only for the involved exchanges and BSV holders seeking compensation but also for the broader regulatory environment surrounding cryptocurrency exchanges.
If the plaintiffs succeed, it may encourage other affected token holders to pursue legal action. This could potentially lead to a wave of similar lawsuits in the crypto space. This case underscores the ongoing tensions and regulatory challenges in the rapidly evolving world of cryptocurrency.
Disclaimer
FAQ
The $9B BSV delisting case is a legal battle at the UK's Competition Appeal Tribunal, where six major crypto exchanges are accused of causing $9 billion in missed opportunities for BSV holders due to their 2019 delisting decision.
The defendants include Binance Europe Services, ShapeShift, Kraken (Payward), Bittylicious, and other associated entities.
Exchanges like Kraken and Binance cited reasons such as BSV's behavior being "completely antithetical" to their values and standards. However, clear reasons were not provided at the time of delisting.
