Bitcoin SV (BSV) investors are set to renew a legal push to hold Binance accountable for the cryptocurrency’s decline in value, noting that the damage impacted by the exchange delisting in 2019 is irreversible.
The group is urging the UK Court of Appeal to reinstate their “loss of chance” claim, which could potentially result in a $13.3 billion penalty against Binance.
Bitcoin SV and Binance battle background
In July 2024, the UK Competition Appeal Tribunal dismissed part of the investors’ claim, ruling that most BSV holders could have mitigated losses by trading into other cryptocurrencies after the delisting.
The investors’ legal team, led by John Wardell KC, insists that the delisting caused a permanent ongoing loss of value, preventing the project from achieving its full market potential.
“Because of the delisting, there has been damage that continues to this day,” Wardell argued. “If it hadn’t been for the delisting, BSV would be a first-tier currency like Bitcoin.”
Meanwhile, Binance’s defene counters that the coin was always a readily marketable asset, and investors could swap it for Bitcoin or other cryptocurrencies.
Brian Kennelly KC, representing Binance, urged the court not to overturn the tribunal’s decision, emphasising that the market mitigation rule should apply.
The lawsuit is part of an action that also targets Kraken, ShapeShift, and Bittylicious, all of which delisted the cryptocurrency in 2019.
Binance, for its part, cited Craig Wright’s behavior and threats of litigation against critics as key reasons for the delisting.
Despite the delisting, the coin price briefly surged to an all-time high of $425 in 2021 during the crypto bull market.
But, it has since been reduced to around $40 due to security issues, including multiple 51 percent attacks, and a loss of credibility after a UK court ruled in 2023 that Wright was not Satoshi Nakamoto.
Legal experts remain skeptical about the investors’ chances of success. Ashley Fairbrother, a partner at Edmonds Marshall McMahon, called the case very novel but noted that recent rulings have set a high bar for similar claims.
“While legal action against exchanges is theoretically possible, significant legal and practical hurdles would need to be overcome,” Fairbrother said.
He also pointed out the irony that a victory for the investors could inadvertently benefit Wright, whose fraudulent claims were central to the project’s downfall.
What lies ahead for the Bitcoin SV project?
With BSV’s price declining and its network repeatedly compromised, the lawsuit appears to be a desperate attempt to assign blame rather than address the project’s fundamental flaws.
The cryptocurrency’s decline has been accelerated by Wright’s exposed deception, repeated network vulnerabilities, and a lack of adoption.
Even if the Court of Appeal allows the loss of chance claim to proceed, the investors could face a difficult battle to prove that Binance’s delisting—rather than BSV’s own shortcomings—caused their losses.
Regardless, the crypto world has moved forward, and Bitcoin SV now serves as a warning about the risks associated with hype surrounding a founder and poor network security.