Quick Facts

Binance Scores Legal Victory as UK Court Partially Dismisses Bitcoin SV Lawsuit

In a significant ruling, the United Kingdom’s Court of Appeal has partially dismissed a lawsuit brought by Bitcoin SV (BSV) investors against major crypto exchanges, including Binance, for allegedly conspiring to delist the token in 2019. This legal victory marks a significant milestone for Binance, demonstrating the exchange’s commitment to upholding the law and protecting its interests in the face of intense scrutiny.

The Background

In 2019, Binance, along with several other major crypto exchanges, delisted BSV from their platforms. The move was sparked by controversy surrounding the token’s creator, Craig Wright, who claimed to be the pseudonymous Satoshi Nakamoto, the inventor of Bitcoin. The delisting led to a significant decline in BSV’s value, prompting investors to seek compensation for their losses. In 2020, the UK’s High Court dismissed an initial lawsuit brought by BSV investors, but the investors appealed the decision, citing alleged conspiracy and negligence on the part of the exchanges.

The Judgment

In a 21-page judgment handed down on May 21, the Court of Appeal rejected the investors’ claims, ruling that they were not entitled to billions of pounds in damages based on BSV’s hypothetical growth. The court found that investors who held BSV through the delisting period (classified as “sub-class B”) were not entitled to damages, as they had ample opportunity to mitigate their losses by selling or reinvesting in other crypto assets.

Judge Sir Geoffrey Vos, Master of the Rolls, wrote that “BSV was obviously not a unique cryptocurrency without reasonably similar substitutes,” citing the representative’s own use of Bitcoin and Bitcoin Cash as comparators. The court also rejected the investors’ “foregone growth effect” theory, which claimed that Binance’s delisting deprived holders of the chance to profit from BSV’s potential rise to a “top-tier cryptocurrency” like Bitcoin or Bitcoin Cash.

Binance’s Victory

Binance’s victory in the UK court is a significant blow to the investors, who had been seeking to hold the exchange accountable for alleged conspiracy and negligence. The court’s ruling confirms that Binance took a prudent and responsible approach in delisting BSV, while also highlighting the risks and uncertainties associated with investing in cryptocurrency.

This legal victory is also a testament to Binance’s commitment to upholding the law and protecting its interests in the face of intense scrutiny. As the leading crypto exchange, Binance has consistently demonstrated its willingness to take a stand and defend its position, even in the face of adversity.

Implications

The implications of this ruling are far-reaching, with potential consequences for the broader cryptocurrency industry. The court’s rejection of the investors’ claims serves as a deterrent to similar lawsuits, while also reinforcing the importance of due diligence and risk management in the crypto space.

For Binance and other exchanges, this ruling provides a valuable precedent for defending against lawsuits and maintaining their legal integrity. The exchange’s commitment to upholding the law and protecting its interests sends a strong message to investors and the broader crypto community, demonstrating that Binance is a responsible and accountable organization.

What’s Next?

While the UK court’s ruling marks a significant victory for Binance, the exchange is not resting on its laurels. On May 16, Binance filed a motion to dismiss a $1.76 billion lawsuit filed by the FTX estate, arguing that the claims are legally flawed and an attempt to shift responsibility for FTX’s collapse. Binance has asked the court to dismiss all claims with prejudice, and the FTX estate has not yet filed its response.

As the legal battles continue to unfold, Binance’s commitment to upholding the law and protecting its interests remains unwavering. The exchange’s legal victory is a significant milestone, demonstrating its resolve to stand strong in the face of adversity and emerge victorious in the end.

UK Court Issues Partial Dismissal of Bitcoin SV Lawsuit Against Binance