UK Court Strikes Out Core Argument in BSV Class Action Suit Against Binance
The UK appeal court has struck out the majority of a landmark $13.3 billion class action by BSV Claims Ltd against Kraken and Binance. The suit alleged that Bitcoin SV (BSV) investors lost a lot of money after the cryptocurrency was delisted from the two exchange behemoths in 2019.
‘Loss of Chance’ Argument Struck Down
At the heart of the action was a “loss of chance” claim, which stated BSV could have risen in value to the same level as Bitcoin had it remained listed. The court upheld an earlier decision by the Competition Appeal Tribunal, ruling the claim speculative and not appropriate for collective proceedings. It ruled the claim had to be considered on direct causation rather than possibilities.
The court again reaffirmed that BSV was still saleable following the delisting and substitute assets like Bitcoin and Bitcoin Cash were present to investors. The investors who chose to keep holding BSV even knowing they had been delisted made deliberate decisions which could not be described as recoverable losses.
Smaller Claims May Proceed
While the court rejected much of the representative claim, individual claims by those who lost visibility to their tokens or sold in loss due to delisting may still be able to proceed. The judge further included, though, that the absence of a formal order by the Tribunal raised procedural uncertainty.
Implications for Crypto Class Actions
The ruling narrows the path for future speculative crypto class actions. The ruling also indicates the courts’ reluctance to apply the loss of chance doctrine in cases where investor decision and market behavior are essential elements.
