In 2019, Bitcoin SV was delisted from major exchanges after Dr. Craig Wright claimed to be Satoshi Nakamoto, causing a class action lawsuit alleging significant losses for investors. Following a ruling that Wright had lied about being Bitcoin’s creator, a new case is unfolding in British courts regarding Bitcoin SV, which was created in 2018 after a hard fork from Bitcoin Cash. Wright, a vocal supporter of BSV, claims it is the real Bitcoin with faster and cheaper transactions due to larger block sizes.
BSV Claims Limited is leading the class action lawsuit against Binance, Kraken, Bittylicious, and ShapeShift, demanding up to £10 billion in damages for colluding to delist BSV, resulting in financial harm to British consumers who had invested in the cryptocurrency. The organization is spearheaded by influential figures such as Lord David Currie and Lord Andrew Tyrie, with funding from Softwhale Limited, backed by Calvin Ayre, a Canadian entrepreneur supporting BSV.
The lawsuit claims that delisting BSV was an anti-competitive practice violating competition law, representing an estimated 244,000 British BSV investors on an “opt out” basis. Evidence presented includes tweets surrounding the delisting and support for Hodlonaut’s accusations against Wright. Following the delisting by Binance in April 2019, BSV’s value plummeted by 50% within two days, dropping from the 12th to 75th largest cryptocurrency by market capitalization.
Binance defended their decision to delist BSV, arguing that they periodically review listed assets, while Kraken labeled the lawsuit as baseless. The ongoing hearing aims to certify the class action with a collective proceedings order, potentially leading to a trial, although a decision on damages could take two to three years. Despite Binance’s argument that investors freely chose to hold BSV, the lawsuit alleges collusion among exchanges led to price manipulation, causing significant financial losses for investors. As the legal battle continues, the future of Bitcoin SV and its investors remains uncertain.
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