Kraken and Binance have delisted Bitcoin SV. Now they’re being sued for $13 billion

Bitcoin SV was delisted from both exchanges in 2019 after Dr. Craig Wright claimed it was Satoshi Nakamoto. Now, a class action lawsuit alleges that this caused major losses to the currency’s investors.

Fresh from a condemnatory decision that Craig Wright “extensively and repeatedly” lied about being the pseudonym of Bitcoin creator Satoshi Nakamoto, another crypto showdown is now unfolding in British courts.

The case currently being heard by the Competition Appeal Tribunal in London concerns Bitcoin Satoshi Vision — Bitcoin SV to summarize – which was created in 2018 after a hard fork of another cryptocurrency known as Bitcoin Cash.

Dr Wright has long been a vocal supporter of BSV – going so far as to claim that it is the real Bitcoin – and argues that this digital asset, which has a considerably larger block size, paves the way for cheaper and faster transactions on the blockchain.

This background brings us back to the class action lawsuit being heard by the court. A group known as BSV Claims Limited is suing four major cryptocurrency exchanges – Binance, KrakenBittylicious and Metamorphosis – and demanding up to £10 billion ($12.8 billion) in damages.

Why? Because it is alleged that these trading platforms conspired to delist BSV in April 2019. Lawyers representing the class claim that this artificially lowered the currency’s price and caused financial harm to British consumers who invested in it.

It is especially interesting to see who is leading BSV Claims Limited. Lord David Currie, of Marylebone, held several influential roles in Britain during his career – serving as chairman of the Competition and Markets Authority, as well as the first chairman of broadcasting regulator Ofcom.

The organization goes on to say that it is supported by several other prominent politicians. They include Lord Andrew Tyrie, a trained economist who was a member of Parliament for 20 years and former chairman of the Treasury Select Committee. A current MP, Sir Robert Buckland, also sits on the advisory board. He used to be justice secretary.

What is happening?

According to BSV Claims Limited, the decision to delist BSV was “an anti-competitive practice that violates competition law”. The lawsuit is said to represent around 244,000 Britons who owned the cryptocurrency and are on an “opt out” basis, meaning all investors would be considered eligible for damages unless they explicitly say they are not interested.

The case is being funded by a company called Softwhale Limited, which would receive a share of any damages if the class action is successful. Little is known about the business – but according to BloombergThe financing of this company comes from Calvin Aire. He is a Canadian businessman and former gaming mogul who also supported BSV.

A portion of the evidence presented by BSV Claims Limited relates to tweets sent around the time this cryptocurrency was delisted. Five years ago, a pseudonymous Bitcoiner called Hodlonaut brandished Wright as a “fraud” and a “scammer” on Twitter. (A defamation lawsuit soon followed, which Hodlonaut eventually won.) Changpeng Zhao, then CEO of Binance, tweeted in support of Hodlonaut – writing in April 2019:

Just three days later, CZ continued this threat – with the exchange announcing that all BSV trading pairs would be listed. At the time, Binance argued:

“We periodically review each digital asset we list to ensure it continues to meet the high level of standard we expect.”

Binance

The news of the delisting by the largest exchange in the world caused the value of BSV to plummet – leading to a precipitous drop of 50% in two days. And while the cryptocurrency was once the 12th largest in terms of market capitalization in 2019, it is now 75th, with prices stagnating while other major altcoins enjoy a bull market.

For its part, Binance told the London court on Wednesday that a large part of the case – relating to whether BSV has the potential to become a major cryptocurrency – should be thrown out. Exchange attorney Brian Kennelly said those who continued to hold this altcoin made “an entirely voluntary decision” and were free to invest in an alternative.

Meanwhile, Kraken previously described this lawsuit as “baseless.”

The current three-day hearing relates to BSV Claims Limited’s attempt to obtain certification of its class action with a class action order, meaning the case remains at a very early stage. If granted, it would progress to a trial – with the organization itself admitting it could take two to three years before any decision on damages is made.

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