UK Authorities Commence Legal Proceedings Against Six Exchanges Over 2019 Delisting of Bitcoin SV (BSV)
By Hassan Shittu
June 5, 2024, 10:35 EDT
The Competition Appeal Tribunal in the United Kingdom has officially initiated legal proceedings against six major cryptocurrency exchanges for their decision to delist Bitcoin SV (BSV) in 2019.
The case, which has been brought forward by plaintiffs seeking $9 billion in damages for missed opportunities, highlights the ongoing legal complexities and significant financial implications within the crypto industry.
Hearing Begins for Major Crypto Exchanges Involved in BSV Delisting
On June 5, the Competition Appeal Tribunal in the UK commenced a hearing against six exchanges that delisted Bitcoin SV in 2019. The defendants in the case include Binance Europe Services, ShapeShift (owned by Erik Voorhees), Kraken (represented as Payward), Bittylicious, and their associated entities.
Each defendant is being represented by their respective legal teams, resulting in extensive documentation and the involvement of multiple lawyers. The tribunal estimates that the collective proceedings order (CPO) will take three days to complete.
Bitcoin SV (BSV), which stands for “Satoshi’s Vision,” is a blockchain and cryptocurrency that split from Bitcoin Cash (BCH) in 2018. It was founded by a blockchain development firm associated with Craig Wright, who controversially claims to be Satoshi Nakamoto, the anonymous creator of Bitcoin.
The split and subsequent delisting were the result of a divide within the community, with various firms and prominent figures supporting different narratives and forks.
In April 2019, several major exchanges, including Binance and Kraken, delisted BSV. These delistings were controversial and lacked clear explanations at the time. Kraken cited BSV’s behavior as “completely antithetical” to its values and even conducted a poll suggesting that BSV was “toxic.” Binance provided minimal reasoning, stating that BSV no longer met its standards.
In 2022, BSV Claims initiated a $12 billion class action lawsuit filed in the UK against Binance, Kraken, and others. The plaintiffs argue that BSV holders missed out on significant growth opportunities due to the delistings and estimate that $9 billion in compensation is owed.
Similar Lawsuits Filed Last Year
Last year, the American law firm Roche Freedman filed a similar class action lawsuit against major crypto exchanges and token issuers, including Binance, KuCoin, and BitMEX. The lawsuit accused them of selling unlicensed securities and manipulating the market.
The lawsuits also targeted BiBox, the Tron Foundation, Block.one, Quantstamp, KayDex, Civic, BProtocol, and Status, as well as notable figures like Binance CEO Changpeng Zhao, who is currently serving a prison sentence in California, and EOS and Block.one’s Dan Larimer and Brendan Blumer.
The firm alleges that these exchanges manipulated prices to force liquidations and violated public trust, resulting in substantial profits.
Roche Freedman, known for its involvement in cryptocurrency litigation, including representing the estate of Dave Kleiman against Craig Wright, stated that the lawsuits contain evidence of misconduct that generated billions in illicit profits.
Blum, the COO of Two Prime, mentioned that these lawsuits could establish legal precedents regarding securities offerings and jurisdictional responsibilities. However, some companies have opted for out-of-court settlements, and enforcing decisions on international entities like Tron or KuCoin has proven challenging.
This unexpected development marks a critical phase in the ongoing dispute between regulators and crypto companies, and the delistings have resulted in significant financial claims.
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