The investors had accused Binance and other crypto exchanges of conspiring to delist BSV in 2019. They argued this move deprived them of potential profits.
But the court ruled that investors in the BSV lawsuit could have taken steps to reduce their losses. This undermined claims for speculative damages based on BSV’s hypothetical price growth.
What Happened in the Lawsuit?
The lawsuit centered on investors who held BSV during the period it was delisted by major exchanges, including Binance. This group, called “sub-class B,” sought billions in damages, claiming that removing BSV from trading platforms cost them the opportunity to benefit from its future rise. They pointed to popular cryptocurrencies like Bitcoin (BTC) and Bitcoin Cash (BCH) as examples of potential growth that BSV might have matched.
However, the court rejected this “foregone growth effect” theory. It emphasized that BSV was not unique and had several comparable cryptocurrencies. The judges also noted that investors had the chance to cut losses by selling BSV before or after the delisting or by switching to other digital assets.
In a judgement released today, the UK’s court of appeal has rejected the appeal from “BSV Claims”, to go after Kraken & Binance for BSVs “forgone growth effect”. The £9.3 billion claim is over
The case is now over a much smaller amount. Maybe 360x smaller… pic.twitter.com/9DL7kNsmsW
— BitMEX Research (@BitMEXResearch) May 21, 2025
Master of the Rolls Sir Geoffrey Vos wrote, “They had a duty to mitigate their losses. They cannot recover losses that they could reasonably have mitigated.” The court applied the “market mitigation rule,” which means investors can’t claim damages for losses they could have avoided through reasonable actions.
Why This Case Matters for Crypto Investors
This ruling reflects a growing trend where courts hold investors responsible for managing risks in the highly volatile crypto market. Cryptocurrencies like BSV often experience large price swings, and the court underscored this inherent volatility when dismissing the claim based on lost potential gains.
The decision also highlights the challenges investors face when assets are delisted, a common occurrence in crypto. For example, in 2019, Binance and others delisted BSV amid controversy, impacting its liquidity and price. While this hurts investors, the ruling suggests that taking proactive steps, like transferring holdings or diversifying, can protect against losses.
Disclaimer
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