Binance Seeks to attempting to dismiss a significant portion of a lawsuit filed in London
which amounts to as much as £10 billion ($12.8 billion). The lawsuit alleges collusion between Binance and other exchanges to delist the Bitcoin Satoshi Vision (BSV) cryptocurrency, causing substantial losses to BSV owners.
Background of the Lawsuit
- Binance and other exchanges, including Kraken, are facing legal action at London’s Competition Appeal Tribunal (CAT) on behalf of over 200,000 BSV owners.
- The lawsuit, brought by BSV Claims, accuses the exchanges of engaging in anti-competitive behavior by delisting BSV in 2019, resulting in a significant decline in its value.
- BSV Claims argues that the delisting prevented BSV from becoming a top-tier cryptocurrency
estimating the potential damages at up to £9 billion.
Binance’s Defense
- Binance is seeking to dismiss the part of the lawsuit related to BSV’s alleged potential to become a major cryptocurrency.
- According to Binance’s lawyer Brian Kennelly, individuals who retained BSV after its delisting made a voluntary decision and could have chosen to sell it and invest in comparable cryptocurrencies.
- Binance contends that the decision to hold onto BSV was not coerced and does not warrant compensation.
Legal Proceedings
- BSV Claims’ lawyers insist that the issue should proceed to trial along with the rest of the case
rejecting Binance’s attempt to dismiss this aspect of the lawsuit. - Binance has refrained from commenting on the ongoing litigation, while Kraken has described the lawsuit as “baseless.”
Context and Conclusion
- Binance, Kraken, and other exchanges delisted BSV in response to claims by Craig Wright
an Australian computer scientist associated with BSV, asserting that he is the pseudonymous creator of Bitcoin
Satoshi Nakamoto. - Earlier this year, Wright was found guilty of providing false information and fabricating documents to support his claim of being Satoshi Nakamoto
a ruling he intends to appeal.
In summary, Binance’s efforts to reduce the scope of the lawsuit highlight the complexities and legal challenges facing cryptocurrency exchanges amidst ongoing litigation and regulatory scrutiny.
FAQs
1. What is the basis of the lawsuit against Binance and other exchanges? The lawsuit alleges collusion and anti-competitive behavior by Binance Seeks to other exchanges in delisting the Bitcoin Satoshi Vision (BSV) cryptocurrency
resulting in significant losses for BSV owners.
2. What is Binance’s defense against the lawsuit? Binance argues that individuals who chose to retain BSV after its delisting made a voluntary decision and could have opted to sell it and invest in other cryptocurrencies.
3. How has Craig Wright’s involvement impacted the lawsuit? Craig Wright’s claims of being the pseudonymous inventor of Bitcoin, Satoshi Nakamoto
played a significant role in the delisting of BSV. However, his credibility was called into question following a court ruling that found him guilty of providing false information.
4. What are the potential implications of this lawsuit for the cryptocurrency industry? The outcome of this lawsuit could have broader implications for cryptocurrency exchanges
particularly regarding their delisting policies and the legal responsibilities associated with such actions.
5. How does the lawsuit reflect broader regulatory challenges facing the cryptocurrency industry? The lawsuit underscores the need for clearer regulatory guidelines and oversight in the cryptocurrency space to address issues such as market manipulation
anti-competitive behavior
and investor protection.