UK court clears Binance in $11.9B BSV lawsuit, setting precedent for future crypto cases - IcoHolder.

In a significant legal victory for major cryptocurrency exchanges, the UK Court of Appeal has partially dismissed an $11.9 billion class-action lawsuit involving the 2019 delisting of Bitcoin SV (BSV). The case, filed by investors, accused Binance, Kraken, ShapeShift, and Bittylicious of stripping BSV of its growth potential by removing it from their platforms.

On May 21, the court struck down the central arguments of the lawsuit, affirming that exchanges were not legally obligated to sustain BSV’s market presence. The investors had claimed that BSV, a Bitcoin fork associated with controversial figure Craig Wright, might have soared in value if it remained listed. However, the court ruled that such speculative gains were not recoverable.

Sir Geoffrey Vos, Master of the Rolls, emphasized that BSV was not a uniquely irreplaceable asset and that similar cryptocurrencies were available. He underscored that investors had a responsibility to mitigate potential losses by reallocating their funds, rather than relying on hypothetical market outcomes.

The court also rejected the concept of "loss of a chance," dismissing the notion that plaintiffs could claim damages based on missed profit opportunities in such a volatile market. The ruling clarified that only demonstrable and quantifiable losses would be considered valid.

This decision not only clears Binance and its co-defendants in this case but also sets a precedent likely to influence future crypto litigation. It comes at a favorable time for Binance, which is concurrently seeking to dismiss a separate $1.76 billion lawsuit from the FTX estate, asserting the defunct exchange’s collapse stemmed from internal misconduct.

With the UK ruling reinforcing their legal stance, crypto exchanges may now face fewer hurdles in defending against similar investor lawsuits based on speculative losses.