{"id":12330,"date":"2025-05-22T14:55:29","date_gmt":"2025-05-22T12:55:29","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=12330"},"modified":"2025-05-22T14:55:29","modified_gmt":"2025-05-22T12:55:29","slug":"uk-court-partially-rejects-bitcoin-sv-investors-case-against-binance","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/05\/22\/uk-court-partially-rejects-bitcoin-sv-investors-case-against-binance\/","title":{"rendered":"UK Court Partially Rejects Bitcoin SV Investor’s Case Against Binance"},"content":{"rendered":"

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The Court of Appeal in the United Kingdom has partially rejected a lawsuit initiated by Bitcoin SV investors against prominent cryptocurrency exchanges, such as Binance, for purportedly conspiring to remove the token from their platforms in 2019.<\/p>\n

In a verdict<\/a> delivered on May 21, the court decided that investors who possessed BSV throughout the period of its delisting (designated as \u201csub-class B\u201d) were not entitled to billions in speculative compensation based on BSV\u2019s projected growth.<\/p>\n

These investors had sought more than 8.9 billion British pounds ($11.9 billion) in compensation, claiming that Binance\u2019s delisting robbed holders of the opportunity to gain from BSV\u2019s potential ascent to a \u201ctop-tier cryptocurrency\u201d like Bitcoin (BTC<\/a>) or Bitcoin Cash (BCH<\/a>).<\/p>\n

The court dismissed this \u201cmissed growth effect\u201d argument, asserting, \u201cBSV was clearly not a one-of-a-kind cryptocurrency without reasonably comparable alternatives,\u201d referencing the representative\u2019s own use of Bitcoin and Bitcoin Cash as benchmarks.<\/p>\n

Sub-class B\u2019s primary assertion was that delisting resulted in a lost opportunity to benefit from price surges. However, the court concluded that those investors had sufficient chances to alleviate losses by either selling or reinvesting in different crypto assets.<\/p>\n

\u201cThey bore the responsibility to mitigate their losses,\u201d wrote Master of the Rolls Sir Geoffrey Vos. \u201cThey are not entitled to recover losses that they could have reasonably mitigated.\u201d<\/p>\n

UK court ruling against Bitcoin SV investor’s lawsuit. Source: Caselaw<\/em><\/figcaption><\/figure>\n

Related: <\/strong><\/em>Bitcoin SV investors strive to revive 2019 Binance lawsuit<\/strong><\/em><\/a><\/p>\n

Court rejects \u201closs of a chance\u201d contention<\/h2>\n

The appeal also contested the Tribunal\u2019s implementation of the \u201cmarket mitigation rule,\u201d suggesting that such matters should be reserved for trial.<\/p>\n

The court declined this viewpoint, asserting that the rule distinctly applies to assets like BSV that are traded freely, and that damages need to be assessed shortly following the delisting.<\/p>\n

Another argument concerning the \u201closs of a chance\u201d to benefit from future price increases was also denied. The court determined it was \u201cflawed as a principle,\u201d noting that \u201ccryptocurrencies are inherently volatile investments.\u201d<\/p>\n

Binance\u2019s limited strike-out application was ultimately successful, with the court indicating that even if some holders were unaware of the delisting, \u201cthey could never claim more than the total worth of their holding prior to the delisting events plus any measurable consequential losses.\u201d<\/p>\n

Related: <\/strong><\/em>Binance seeks arbitration for all participants in securities class action<\/strong><\/em><\/a><\/p>\n

Binance aims to dismiss FTX lawsuit<\/h2>\n

On May 16, Binance submitted a motion to dismiss a $1.76 billion<\/a> lawsuit filed by the FTX estate, contending that the allegations are legally misguided and an attempt to shift blame for FTX\u2019s downfall.<\/p>\n

The exchange asserted that FTX\u2019s failure was due to internal fraud, not external manipulation, citing Sam Bankman-Fried\u2019s conviction on multiple fraud offenses.<\/p>\n

Binance has requested the court to dismiss all claims with prejudice. The FTX estate has not yet responded.<\/p>\n

Magazine: <\/strong><\/em>TradFi is developing Ethereum L2s to tokenize trillions in RWAs: Inside story<\/strong><\/em><\/a><\/p>\n