UK Authorities Begin Proceedings Against Six Exchanges Over 2019 Delisting of Bitcoin SV (BSV)

The United Kingdom’s Competition Appeal Tribunal has initiated proceedings against six major cryptocurrency exchanges over their decision to delist Bitcoin SV (BSV) in 2019.

The case, brought forward by plaintiffs seeking $9 billion in damages for missed opportunities, indicates more red lights on the ongoing legal complexities and significant financial stakes within the crypto industry.

Hearing of Big crypto exchanges Over Decision to Delist BSV

On June 5, the UK Competition Appeal Tribunal commenced a hearing against six exchanges that delisted Bitcoin SV in 2019. The defendants include Binance Europe Services, Erik Voorhees’ ShapeShift, Kraken (represented as Payward), Bittylicious, and related entities.

Each defendant is represented by their legal team, leading to extensive documentation and many lawyers involved. The tribunal has estimated that the collective proceedings order (CPO) will take three days.

Bitcoin SV (BSV), short for “Satoshi’s Vision,” is a blockchain and cryptocurrency that split from Bitcoin Cash (BCH) in 2018. It was founded by a blockchain development firm associated with Craig Wright, who controversially claims to be Satoshi Nakamoto, Bitcoin’s anonymous creator.

The split and subsequent delisting stemmed from a community divide, with various firms and prominent figures backing different narratives and forks.

In April 2019, a wave of BSV delistings occurred, including from major exchanges like Binance and Kraken. These delistings were controversial and largely unexplained at the time. Kraken cited BSV’s behavior as “completely antithetical” to its values and even conducted a poll suggesting BSV was “toxic.” Binance provided minimal reasoning, stating that BSV no longer met its standards.

In 2022, BSV Claims spearheaded a $12 billion class action lawsuit filed in the UK against Binance, Kraken, and others. The plaintiffs argue that BSV holders missed substantial growth opportunities due to the delistings, estimating that $9 billion in compensation is owed.

A Similar Lawsuit Filled Last Year

An American law firm, Roche Freedman, initiated a similar class action of lawsuits last year against major crypto exchanges and token issuers , including Binance, KuCoin, and BitMEX, accusing them of selling unlicensed securities and manipulating the market.

The lawsuits also target BiBox, the Tron Foundation, Block.one, Quantstamp, KayDex, Civic, BProtocol, and Status, as well as notable figures like Binance CEO Changpeng Zhao, who is now serving his sentence in a California prison , and EOS and Block.one’s Dan Larimer and Brendan Blumer.

The firm alleges that these exchanges manipulated prices to force liquidations and betrayed public trust, resulting in substantial profits.

Roche Freedman, known for its involvement in cryptocurrency litigation, including representing the estate of Dave Kleiman against Craig Wright, asserted that the lawsuits contain evidence of misconduct that generated billions in illicit profits.

Blum, COO of Two Prime, mentioned that these lawsuits could set legal precedents on what constitutes a securities offering and the jurisdictional responsibilities. However, some companies opted for out-of-court settlements, and enforced decisions on international entities like Tron or KuCoin were challenging.

The current unexpected event marks a critical phase in this long-standing dispute between regulators and crypto companies, and the delistings have led to significant financial claims.