Chiliz (chz) 
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In a significant legal development, a UK appellate judge has upheld a tribunal’s decision to strike out a major damages argument in the landmark BSV Claims Ltd v. Binance and Kraken class action case. The ruling dismisses most of the $13.3 billion class action brought against Binance, citing speculative claims regarding Bitcoin SV (BSV) potentially reaching Bitcoin’s value if not delisted in 2019.
Class Action Narrowed Down
The case, initiated by BSV Claims Ltd, seeks compensation for BSV investors following the cryptocurrency’s delisting from major exchanges Binance and Kraken in 2019. While the broader claim was rejected, smaller claims from users who lost access to their holdings or sold at a loss may still proceed.
Key Legal Arguments Rejected
The representative claim relied heavily on a “loss of chance” argument, asserting that BSV could have gained substantial value and possibly emerged as a top-tier cryptocurrency if it had not been delisted. However, both the Tribunal and the court dismissed this argument, deeming the damages speculative.
“The court ruled that the assertion BSV would have matched Bitcoin’s value was speculative and lacked sufficient evidence to proceed.”
Opportunity to Mitigate Losses
According to the ruling, investors classified as “sub-class B” who were aware of the delistings had the opportunity to sell their holdings in the open market, thereby mitigating potential losses. The court emphasized that BSV remained a tradeable asset with comparable alternatives such as Bitcoin and Bitcoin Cash, which were highlighted by the claimants themselves.
By holding onto BSV after the delisting, the court determined that investors made a voluntary investment decision rather than incurring a recoverable loss. This finding undermined the foundation of the broader class action claim.
Loss of Chance Doctrine Not Applicable
The judge also addressed the applicability of the loss of chance doctrine, commonly used in cases where outcomes depend on third-party decisions. The court concluded that this doctrine did not suit the facts of the case. Instead, the matter hinged on direct causation—whether BSV’s value would have increased absent the delisting—a question requiring evidence rather than speculation.
“The court clarified that claims based on speculative future outcomes are not recoverable under current legal standards.”
Criticism of Procedural Oversights
Additionally, the judge criticized the absence of a formal order from the Competition Appeal Tribunal. Such an order, the court argued, would have clarified the scope of the claim and streamlined the appeal process.
This ruling marks a significant precedent for cryptocurrency-related class actions, emphasizing the importance of concrete evidence over speculative claims.
Key Takeaways for Crypto Investors
For investors in the cryptocurrency market, this case highlights several important points:
- Always stay informed about exchange policies and delistings that can impact your holdings.
- Consider selling assets in the open market if significant risks arise.
- Understand that speculative claims about future asset value may not hold up in court.
The legal landscape surrounding cryptocurrency investments continues to evolve, underscoring the need for both vigilance and knowledge when navigating this dynamic market.
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