A major legal development has unfolded in the cryptocurrency space as the UK Court of Appeal partially dismissed a multi-billion dollar lawsuit filed by Bitcoin SV (BSV) investors against leading crypto exchanges, including Binance and Kraken. The lawsuit, initially seeking £9.9 billion (~$11.9 billion) in damages, claimed the delisting of BSV harmed its market potential.
Background: The BSV Delisting Controversy
In April 2019, major exchanges including Binance, Kraken, and ShapeShift delisted Bitcoin SV (BSV), a hard fork of Bitcoin Cash, citing concerns over its centralization and leadership. Investors alleged this coordinated action negatively impacted the value and growth prospects of BSV, preventing it from competing fairly in the market.
The claimants argued that delisting BSV suppressed its price and market presence, costing investors billions in lost opportunity.
Court Rejects Speculative Damages
In a ruling issued on May 21, 2025, the UK Court of Appeal dismissed parts of the case, particularly the claims related to “foregone value” or “hypothetical growth” of BSV.
“The investors cannot claim damages for potential growth that never occurred,” wrote Master of the Rolls Sir Geoffrey Vos. “They had a duty to mitigate losses and could have traded BSV for other assets.”
The court found that Bitcoin SV was not a unique asset without alternatives, and thus the alleged loss of future gains was speculative and unsupported.
Reduced Scope of Lawsuit
Although the overall lawsuit still proceeds in a limited form, the court’s decision has significantly weakened the claim. The rejection of the largest portion—based on speculative market growth—may discourage similar lawsuits in the future.
The dismissal slashed potential damages from $11.9 billion to a fraction of that amount, dramatically lowering the financial risk for exchanges like Binance and Kraken.
Market Response
Following the court’s decision, BSV’s price remained largely stable, trading around $62.50, with no major fluctuations in trading volume. This suggests that the ruling had minimal immediate impact on investor sentiment or BSV’s valuation.
Crypto markets largely shrugged off the news, viewing the outcome as a win for centralized exchanges.
Conclusion
The UK court’s partial dismissal of the BSV lawsuit is a major precedent in crypto litigation. It emphasizes that investors cannot claim massive damages based on hypothetical price movements, and must show actual harm. As regulation in crypto matures, this ruling may guide future disputes between token projects and exchanges.