UK Court Dismisses $13.3B BSV Lawsuit Against Exchanges
- BSV lawsuit dismissed, reducing exchange liability significantly.
- Potential liability reduced to direct losses only.
- Court sets precedent against speculative damages in crypto lawsuits.
The UK Court of Appeals has dismissed the majority of Bitcoin SV’s $13.3 billion lawsuit against Binance and other exchanges over its 2019 delisting.
The court’s decision limits the financial risks to exchanges, rejecting claims based on speculative asset growth, thus not affecting wider crypto markets immediately.
UK Court Limits Exchange Liability in BSV Case
A UK court has dismissed most of a $13.3 billion lawsuit against Binance, Kraken, and others. The lawsuit originated after the 2019 delisting of Bitcoin SV (BSV) from major exchanges.
The lawsuit filed by BSV Claims Ltd focused on alleged speculative losses. The court allowed only claims involving direct, quantifiable losses to proceed against the exchanges, significantly limiting potential financial liabilities.
Ruling Emphasizes Real Losses, Excludes Speculative Claims
The court ruling reduces the potential liability of the exchanges substantially. This decision reaffirms the need for market participants to adapt quickly to policy changes by major exchanges.
The ruling emphasizes that only losses based on actual trading activities are compensable, ruling out claims of missed speculative gains, and thereby setting a precedent for future crypto lawsuits. According to MLex, industry experts noted that this judgment “may pave the way for more responsible claims in cryptocurrency legal battles” by distinguishing between real and speculative damages.
Exchanges Shielded from Past Delisting Lawsuits
Historically, similar lawsuits over delistings, such as Ripple’s temporary removal, have not successfully led to significant liability for exchanges. The court again focused on the need for proof of direct financial impact.
This ruling may encourage exchanges to continue implementing strict listing policies without fear of speculative lawsuits, likely leading to more measured market responses to asset listings and delistings.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
