Overview
The UK Court of Appeal has dismissed most of the $13.3 billion class action lawsuit from Bitcoin SV (BSV) investors against Binance, related to the exchange's suspension of BSV trading in 2019. The court found that the compensation claims based on the assumption that BSV could achieve value like Bitcoin were unrealistic and speculative. Although some smaller claims are still being pursued, this case raises questions about legal risks in the crypto market. The article summarizes the event in detail, its impact on investors, and lessons from markets like the UK and the USA.
The BSV lawsuit against Binance: Key developments
On May 21, 2025, the UK Court of Appeal dismissed most of the $13.3 billion class action lawsuit (10 billion #GBP ) from over 240,000 BSV investors, represented by BSV Claims Limited, against Binance and other exchanges such as Kraken, ShapeShift, and Bittylicious. The group of investors argued that Binance's suspension of BSV trading in 2019 had crushed this token's growth potential, causing them to miss the opportunity to achieve value equivalent to Bitcoin.
The court dismissed the 'foregone growth effect' theory, arguing that the hypothesis #BSV could achieve a value 352 times higher is unfounded. Judge Geoffrey Vos emphasized: 'Claims for hundreds of times the value of the damaged asset are unacceptable.' The court also rejected the 'loss of chance' theory, as this claim does not align with the law and relies on speculative assumptions that BSV would become a leading cryptocurrency.
This decision reinforces the ruling of the UK Competition Court in July 2024, applying the principle of 'market mitigation rule'. Accordingly, investors are responsible for mitigating losses by trading BSV on other active markets, instead of holding assets and demanding large compensation.
Impact on investors and the crypto market
The lawsuit focused on Bitcoin SV (BSV), a token created by Craig Wright, who claimed to be Satoshi Nakamoto but was dismissed by the UK court in early 2025. The suspension of BSV trading by Binance and other exchanges in 2019 led to a sharp decline in the token's price, which is currently trading around $45 (according to CoinMarketCap, May 23, 2025). Although most compensation claims were dismissed, some smaller claims are still under consideration, including:
Investors lost access to BSV after the token was delisted.
Those who traded BSV at low prices immediately after the exchanges' decisions.
The case has raised concerns about legal risks in the crypto market, particularly in the UK (#UK ), where regulations are becoming increasingly strict. In the USA, investors are also closely monitoring, as Binance has faced several similar lawsuits. This decision could impact confidence in smaller tokens like BSV while reinforcing the positions of larger exchanges like Binance.
Lessons for investors
The BSV lawsuit is a warning about the risks in the crypto market:
Avoid speculative investments: Tokens like BSV may promise great potential but lack transparency and are highly influenced by exchange decisions.
Thorough research: Check information from reputable sources such as Binance, CoinMarketCap before investing in new tokens.
Mitigate losses: When a token is delisted, investors should quickly trade on other platforms to avoid significant losses.
Monitor legal regulations: Countries like the UK and the USA are tightening crypto regulations, requiring investors to stay updated frequently.
Suggestions for investors
Prioritize reputable assets: Invest in major coins like Bitcoin, Ethereum, or stablecoins (USDT, $USDC ) to reduce risk.
Use reliable platforms: Binance offers high liquidity and transparent information, helping investors make informed decisions.
Follow legal news: Lawsuits like BSV can affect token prices, especially in the UK and the USA.
Risk warning
Investing in cryptocurrency, including Bitcoin SV, poses high risks due to price volatility and legal risks. The information in this article is for reference only and is not investment advice. Please conduct thorough research (DYOR) before making any investment decisions.