Investors of Bitcoin SV (BSV) are reigniting a legal battle against cryptocurrency exchange giant Binance, attempting to breathe life back into a 2019 lawsuit. Their grievance? Binance’s decision to delist BSV, which they allege hampered the altcoin’s price and investor traction. The plaintiffs are pushing for this case to be reconsidered in light of a July 2024 ruling by the UK Competition Appeal Tribunal, which dismissed their “loss of chance” claims. With potential damages soaring to as much as $13 billion, the stakes couldn’t be higher.
Legal Maneuvering and Market Reactions
This renewed legal push isn’t just a courtroom drama—it’s a saga with direct implications for the cryptocurrency market. According to sources familiar with the case, the litigants argue that Binance’s delisting in 2019, along with similar actions by other major exchanges, effectively kneecapped BSV’s market potential. “The delisting created a chilling effect,” remarked a crypto analyst who wished to remain anonymous, “making it exceedingly difficult for BSV to gain the same traction as Bitcoin.”
Interestingly, the legal rumblings have already caused a stir in the market. Following the announcement, BSV’s price surged by approximately 15%, now hovering around $42. But this uptick, while notable, does little to mask the altcoin’s long-term downtrend. Despite this temporary spike, BSV struggles to capture the economic or computational power that its progenitor, Bitcoin, enjoys.
Historical Context: Delistings and Controversies
To truly understand the current legal tussle, one must look back at the events of April 2019. Binance delisted BSV, citing the controversial behavior of its creator, Craig Wright, whose claims of being Bitcoin’s pseudonymous founder, Satoshi Nakamoto, have consistently been met with skepticism. This decision was not taken in isolation—other exchanges followed suit, contributing to a cascading effect on BSV’s market presence.
In addition to the delistings, BSV has faced technical challenges, including several 51% attacks that compromised the network’s security and undermined its credibility. These attacks, where malicious entities control a majority of the network’s computing power, allow for double-spending of funds, eroding one of the fundamental assurances that digital currencies offer.
The legal team’s current strategy hinges on revisiting the Tribunal’s dismissal of their “loss of chance” argument. They claim that the initial ruling overlooked the broader market implications of the delisting, which, they argue, significantly hindered BSV’s ability to compete in the crypto space. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
Forward-Looking Implications
The outcome of this legal endeavor remains uncertain, but its implications are far-reaching. A victory for BSV investors could set a precedent, potentially opening the floodgates for similar claims from other projects that have been delisted by major exchanges. “This case could redefine how exchanges handle delistings,” noted an industry insider. “It raises questions about the balance of power between exchanges and the projects they list.”
However, legal experts caution against overly optimistic expectations. The complexities of cryptocurrency law, combined with the volatile nature of digital assets, make this a tough battle to win. As the case progresses, the crypto world watches closely, speculating on the potential ripple effects. This legal battle echoes the broader regulatory challenges facing the industry, as detailed in our analysis of U.S. Congress’s debate over crypto legislation.
In a market characterized by unpredictability and rapid innovation, the BSV lawsuit is a testament to the ongoing tensions between crypto projects and the platforms that list them. Whether this legal challenge will lead to a significant shift in policy or simply end as another footnote in crypto history remains to be seen. But one thing is certain—the conversation around exchange accountability is far from over.
Source
This article is based on: Bitcoin SV investors attempt to resurrect 2019 Binance lawsuit
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
