Key points:

  • The plaintiffs allege that exchanges Binance and Kraken conspired to delist the BSV cryptocurrency in 2019.
  • Binance and Kraken deny all allegations and consider the lawsuit to be “baseless.”
  • Binance claims that BSV holders could sell their coins and reinvest in other cryptocurrencies.

On Wednesday, May 5, cryptocurrency exchange Binance attempted to challenge the vast majority of lawsuits filed in London. The lawsuits, totaling up to $10 billion ($12.8 billion), accuse Binance and other exchanges of conspiring to “delist” the Bitcoin Satoshi Vision (BSV) cryptocurrency.

The essence of the British claim

Cryptocurrency exchange Binance and a number of other exchanges, including Kraken, are facing legal action at the London Competition Appeal Tribunal (CAT).

The lawsuit was filed on behalf of more than 200,000 owners of the Bitcoin Satoshi Vision (BSV) cryptocurrency. Lawyers representing BSV Claims, the organization set up to investigate the case, argue that the exchanges acted against a competitor by seeking BSV’s delisting in 2019.

They said the move led to a significant decline in the value of BSV and prevented it from becoming a “top tier cryptocurrency”, causing a loss of £9 billion.

BSV Claims also said the exchanges have no objection to the case being certified under the UK class action regime, which is similar to the US class action regime. However, this certification is only the first step in the legal process.

How Binance is trying to protect itself

Cryptocurrency exchange Binance has petitioned London’s Competition Appeal Tribunal (CAT) to dismiss part of its claim regarding BSV’s alleged potential to become a mainstream cryptocurrency.

Plaintiffs representing BSV Claims claim that exchanges, including Binance, acted anticompetitively by delisting BSV in 2019. This, they argue, led to a significant decline in the value of the BSV and caused a loss of £9bn to owners who retained the BSV after it was delisted.

Binance lawyer Brian Kennelly stated that these BSV holders “could reasonably sell them and reinvest in a comparable cryptocurrency” and that their decision to hold BSV was “entirely voluntary.”

BSV Claims objected to this argument in court papers, arguing that the potential damages suffered by BSV owners should be addressed by the court.

Binance declined to comment on the case, and a Kraken spokesperson said the lawsuit was “baseless.”