#BinancelaunchpoolHuma #BinanceAlpha$1.7MReward $BTC #GENIUSAct
Binance scores a legal victory as the UK court partially dismissed the Bitcoin SV lawsuit
UK judges rejected an $11.9 billion claim from BSV investors, ruling that they could have mitigated losses after Binance and other companies delisted the token.
The UK Court of Appeal partially dismissed a lawsuit brought by Bitcoin SV investors against major cryptocurrency exchanges, including Binance, alleging conspiracy to delist the token in 2019.
In a ruling issued on May 21, the court determined that investors who held BSV shares during its delisting period (classified as "subclass b") were not entitled to billions in speculative damages based on BSV's hypothetical growth.
These investors demanded compensation exceeding £8.9 billion ($11.9 billion), asserting that Binance's delisting deprived its holders of the opportunity to benefit from the potential rise of BSV to "a first-rate cryptocurrency" like Bitcoin.
Bitcoin
$111,439
or Bitcoin Cash
Bitcoin Cash
$437.17
.
The court rejected the "lost growth effect" theory, pointing out that "BSV was clearly not a unique cryptocurrency without reasonably similar alternatives," referencing the use of Bitcoin and Bitcoin Cash as comparisons.
The main claim of subclass (b) was that its delisting resulted in a missed opportunity to benefit from price increases. However, the court determined that these investors had a sufficient opportunity to mitigate losses by selling or reinvesting in other digital assets.
The head of the judges, Sir Geoffrey Vos, wrote: "It was their duty to mitigate their losses. They cannot recover losses they could have reasonably mitigated."
UK court ruling against a Bitcoin SV investor's lawsuit. Source: Law of Cases
Related: Bitcoin SV investors attempt to revive the 2019 Binance lawsuit
The court rejects the "loss of opportunity" argument
The appeal also challenged the court's application of the "market impact mitigation" rule, arguing that such issues should be left for trial.
The court rejected this notion, noting that the rule clearly applies to freely tradable assets like BSV, and damages should be measured shortly after the delisting.
An additional argument regarding the "loss of opportunity" to benefit from future price gains was also rejected. The court ruled that this argument was "fundamentally flawed," noting that "cryptocurrencies, by their nature, are volatile investments."
Ultimately, Binance's limited delisting request was successful, as the court stated that even if some shareholders were unaware of its delisting, "they could never claim more than the total value of their shares before the events of its delisting plus any measurable subsequent losses."
Related: Binance wants arbitration for all members of the class-action lawsuit
Binance seeks to dismiss the FTX lawsuit
On May 16, Binance filed a motion to dismiss a $1.76 billion lawsuit brought by FTX, arguing that the claims were legally defective and an attempt to shift blame for FTX's collapse.
The exchange stated that the collapse of FTX stemmed from internal fraud, not external manipulation, citing Sam Bankman-Fried's conviction on multiple fraud charges.
Binance requested the court to dismiss all claims in light of the rulings. FTX has not yet provided its response.