In a recent development, cryptocurrency exchange Binance has moved to dismiss the majority of a £10 billion ($12.8 billion) lawsuit filed in London, as reported by Reuters.
The lawsuit, being heard at the Competition Appeal Tribunal (CAT), accuses Binance and other exchanges of conspiring to “delist” the Bitcoin Satoshi Vision (BSV) cryptocurrency.
BSV Delisting Controversy
The case, brought on behalf of over 200,000 BSV coin owners, alleges that Binance and other exchanges engaged in “anti-competitive behavior” by delisting the BSV token in 2019.
Lawyers representing BSV Claims, the entity pursuing the case, contend that the delisting caused a significant drop in BSV’s value and hindered its potential to become a “top tier” cryptocurrency, leading to a claim valued at up to £9 billion.
While Binance has not opposed the case’s certification under the UK’s collective proceedings regime, the exchange has requested the CAT to dismiss the part of the lawsuit about BSV’s alleged potential as a major cryptocurrency. This particular aspect of the case represents individuals who retained their BSV holdings after it was delisted.
Binance’s Legal Arguments
Binance’s legal representative, Brian Kennelly, argued that those holding onto BSV made “a voluntary decision” and could have chosen to sell it and invest in comparable cryptocurrencies. BSV Claims’ lawyers, however, contended that the issue should proceed to trial along with the rest of the case.
When approached for comment by Reuters, Binance declined to provide a statement on the ongoing litigation. A spokesperson for Kraken, another exchange named in the lawsuit, dismissed the claims as “baseless.”
Per the report, the decision to delist BSV by Binance, Kraken, and other exchanges in 2019 was partly triggered by assertions by Australian computer scientist Craig Wright, who claimed to be the pseudonymous inventor of Bitcoin, known as “Satoshi Nakamoto.”
In a separate legal proceeding earlier this year, Wright was found to have lied and forged documents supporting his false claim. Wright has expressed his intention to appeal against the ruling.
The lawsuit’s outcome could affect Binance, the other exchanges, and the wider crypto community. As the proceedings continue, stakeholders will closely watch the developments and subsequent decisions made by the Competition Appeal Tribunal.
As of the time of writing, the exchange’s native token, BNB, is trading at $700, following a 17% surge in the past seven days to reach the $715 milestone. This recent peak represents a new all-time high for the BNB token.
Featured image from DALL-E, chart from TradingView.com