UK Authorities Launch Legal Action Against Key Crypto Exchanges over 2019 BSV Delisting
Summary:
UK authorities have launched legal proceedings against six companies involved in delisting the forked cryptocurrency, Bitcoin SV (BSV), in 2019. The defendants include significant global crypto exchanges like Binance Europe Services, Kraken and ShapeShift, among others. A class-action lawsuit has brought to light the controversy around the 2019 BSV delistings, but the exact reasoning behind these decisions remains unclear. The case involves billions in compensation claims for missed growth opportunities by BSV holders after its delisting.
Legal proceedings against six corporate entities have been initiated by UK authorities concerning the 2019 delisting of a specific cryptocurrency following a span of five years. Commencing the hearing against these six companies that delisted Bitcoin SV (BSV), a forked version of cryptocurrency, was the Competition Appeal Tribunal of the UK on 5th June. Defendants in this case comprise some top global digital currency exchanges like Binance Europe Services, Binance's European wing. Other defendants consist of Erik Voorhees’ cryptocurrency exchange, ShapeShift, Kraken (as represented by Payward), Bitcoin (BTC) exchange Bittylicious and several related companies.
As per the data provided by BitMEX Research, each defendant company has its own separate legal representation, resulting in a high count of lawyers associated with the case and a substantial pile of documentation. According to the tribunal's estimate, it is anticipated that the collective proceedings order (CPO) could span over a period of three days.
Bitcoin SV is a cryptocurrency and blockchain that split from Bitcoin Cash (BCH) back in 2018. Its name stands for “Satoshi’s vision” as it was the brainchild of a blockchain development company associated with Craig Wright who incorrectly proclaimed himself the anonymous creator of Bitcoin, Satoshi Nakamoto. A divide in the community was initiated by the Bitcoin Cash fork conflict with different companies and influential figures advancing their own narrative. Roger Ver, Bitmain and prominent exchanges such as Binance and Coinbase reportedly backed another forked coin, namely, Bitcoin ABC.
Mystery still surrounds the motivation behind the 2019 delisting of BSV by Binance, Kraken and ShapeShift. The controversy surrounding a series of BSV delistings in April 2019 has been reignited by the class action lawsuit. No transparent explanation was reportedly provided by exchanges such as Binance or Kraken when they decided to delist the token. On one occasion, Kraken stated that BSV was demonstrating behavior that was in stark contrast to the principles upheld by the wider crypto community and Kraken itself. Furthermore, a poll conducted by the exchange termed BSV as being “toxic.”
When the decision to delist BSV was made in 2019, Binance offered no comprehensive explanation, merely stating that the token no longer satisfied its criteria. The plaintiff BSV Claims has been seeking compensation for the delistings in a 2022 class-action lawsuit against Binance, Kraken and other exchanges, claiming damages amounting to £12 billion over the delisting of BSV. The plaintiffs allege that holders of BSV post 2019 delistings are entitled to compensation worth $9 billion, owing to the potential for growth that was lost.
Published At
6/5/2024 3:20:05 PM
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