Fight over billions in damages over BSV delisting heats up
Getting your Trinity Audio player ready...
An appeal over precisely how much money BSV investors can recover off a group of digital asset exchanges accused of unlawfully colluding to delist BSV took place in London this week, with the representative of the BSV investor class arguing that the impact on BSV's growth should entitle holders to more than £9 billion ($11.9 billion) in damages.
The claim was initially brought against four exchanges—Bittylicious, Kraken, Shapeshift, and Binance—over their delisting of BSV from their platforms in 2019. According to BSV Claims Limited, the lead claimant, which represents more than 200,000 BSV investors affected by the delistings, the exchanges unlawfully entered into an anticompetitive agreement which effectively prevented, restricted or distorted competition within the United Kingdom in violation of the U.K.'s Competition Act 1998.
BSV Claims Limited argues that due to the delistings, the price of BSV fell, causing damage to asset holders. Perhaps most importantly, it argues that the delisting also deprived BSV of the opportunity to develop into a top-tier digital asset, further depriving BSV holders of an expected increase in future value. According to an expert report from Oxera Economics, the total damages are estimated to run up to £9.9 billion ($13 billion).
The Competition Appeals Tribunal (CAT) certified the claim in 2024, meaning the case was given the green light to trial. However, at that certification hearing, the CAT ruled that BSV holders were obligated to mitigate their losses by exchanging BSV for another digital asset once they were made aware of the delistings, drastically limiting the damages that could be recovered for the 'foregone growth' of BSV as an asset.
In essence, the CAT ruled that BSV holders covered by the CPO could at most be able to recover the difference between the price of BSV at the time of the delisting and the time the holders were aware—or ought to have been aware—of the delisting.
BSV Claims Limited has appealed that aspect of the ruling, which was the subject of this week's hearing. The Court of Appeal tribunal appeared to bristle at the figures offered by the expert economic report provided to the CAT, which suggested that if not for the delistings, BSV could be worth enough to put their recoverable damages in the billions. They also questioned the degree to which assets held on delisting exchanges were lost entirely, and how practical it was for holders to use their private keys to sell them on another exchange.
Wardell KC for BSV Claims argued that these questions—whether a suitable alternative for BSV exists at all, at what point holders should have known of the delistings and whether BSV holders might have had justifiable reason to hold onto their investment—should not have been dismissed without the benefit of a full trial. This is particularly so, it was argued, given that digital assets are a still-developing area of law.
The force of BSV Claims' argument is clear. Unlike other markets, where investments might be highly fungible, an investment in a digital asset is usually made for a specific reason. A purchaser of BSV isn't simply trying to get in on any digital asset investment: the purchase is likely made with a particular investment thesis that does not apply to other digital assets. Suggesting that BSV holders at the time of the delisting could have simply swapped BSV for another coin is closer to suggesting that an investor in lumber could have mitigated their losses by swapping it for equities: they are different assets entirely. For BSV investors, BSV is the only show in town.
The CAT, however, appears to view the digital asset market as a singular organism which contains only superficially different assets.
Complicating the hearing was what the Court of Appeal seemed to consider that the written ruling by the CAT was poorly articulated, which affected the quality of the parties' written submissions today.
The Court reserved its judgment, meaning it will be handed down at a later date.
No matter the outcome of the appeal hearing, the BSV investor class action is set to barrel towards trial. It's simply a question of how much money the exchanges will be on the hook for should they lose at trial.
Watch: Onboarding enterprises onto BSV blockchain via AWS
title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen>
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
9 minutes ago
- Reuters
Gold drops as US-China trade deal hopes ease safe-haven demand
June 9 (Reuters) - Gold prices declined on Monday as optimism over easing U.S.-China trade tensions dampened safe-haven demand, while a stronger-than-expected U.S. jobs report tempered expectations of interest rate cuts by the Federal Reserve. Spot gold fell 0.4% to $3,298.12 an ounce as of 0214 GMT. U.S. gold futures lost 0.9% to $3,317.40. Three top aides of U.S. President Donald Trump will meet with their Chinese counterparts in London later in the day to discuss resolving the trade dispute between the two largest economies, a standoff that has kept global markets on edge. "Short-term traders do not want to take aggressive long positions right now ahead of the outcome of U.S.-China talks," said Kelvin Wong, a senior market analyst, Asia Pacific at OANDA. However, tariffs won't disappear, but talks may lower the baseline, Wong said, adding that the cost of doing business in the U.S. will remain elevated and the widening U.S. budget deficit could create a double feedback loop that exacerbates inflationary pressures. The U.S. economy added 139,000 jobs in May, surpassing analysts' expectations, while the unemployment rate was unchanged at 4.2%, the Labor Department said. Wage growth exceeded forecasts, dampening the likelihood of imminent rate cuts. Investors scaled back bets on rate cuts and are anticipating one reduction in October, while awaiting the U.S. CPI data due on Wednesday for more cues. Meanwhile, Trump said a decision on the next Fed chair would be announced soon, adding that a "good Fed chair" would lower rates. On the geopolitical front, Trump's order banning citizens of 12 countries from entering the U.S. takes effect on Monday. Non-yielding bullion, often viewed as a safe-haven asset during economic and geopolitical uncertainties, tends to perform well in a low-interest-rate environment. Elsewhere, spot silver was unchanged at $35.97 per ounce, platinum fell 0.5% to $1,163.64, while palladium held steady at $1,046.18.
The Sun
an hour ago
- The Sun
Sweet-toothed fans are racing to Iceland for retro snack inspired by iconic 2000s drink
SHOPPERS are flocking to Iceland to get their hands on a snack inspired by an iconic 2000s drink. Nesquik now comes in yogurt form, and they are bringing back some core memories for millennials. 1 The cereal treat is a split pot with a generous helping of sweet yogurt made from 83 percent milk and crunchy chocolate balls. The four-pack of 107g Chocoballs pots is being sold exclusively at Iceland for £2.80. There is also a deal on now where you can buy three packs for just £6.00 - saving yourself £2.40. Or you can mix and match them with a choice between Muller Corners or Quality Street's Toffee Dessert. One savvy shopper spotted the tasty treat in their local Iceland and shared a photo on Snack Reviews Facebook page. "I need," one wrote, adding the eyes emoji. "I want these for me, not the kids," another joked. Nesquik was a huge hit in the 2000s and is known for its range of flavoured milk drink powders, particularly the iconic chocolate variety. It has been a staple in many British households for decades, often associated with childhood memories and nostalgic comfort. In addition to the classic powders, Nesquik in the UK has expanded its product range to include ready-to-drink bottles and cereal, further cementing its presence in the breakfast and snack categories. Dunnes Stores fans set for frenzy as major new food section lands in supermarkets This comes as Nesquik's creator Nestle revealed it hiked the cost of its chocolate and coffee for customers. The Swiss company said it's raised its prices by 2.1% overall - but for some items the hikes are in the double digits. It blamed surging costs of coffee beans and chocolate. "Despite the significant level of the increases in many markets, the actions were implemented with limited customer disruption," Nestle said. Nestle produces a range of products, including chocolates, sweets, cereals, drinks, ice cream and pet foods. Among its popular brands are Aero, Milkybar, Smarties, Milo, Haagen Dazs, San Pellegrino, and Felix cat food. The company said it had better-than-expected sales growth of 2.8% in the first three months of the year. The higher prices accounted for much of the rise. Nestle said it had seen demand drop significantly following the price increases but it is now bouncing back. It also warned there could be further impacts on customers due to higher global tariffs. Donald Trump recently launched a global trade war when he announced major tariffs on dozens of countries. The move has raised fears of a global recession, sent stock markets tumbling and caused economic uncertainty for businesses trading internationally. Mr Trump has called on American companies to produce their products in the US to avoid costly tariffs. But for chocolate makers this is near impossible as the key ingredient, cocoa, can only be grown in tropical climates. On top of this, the price of cocoa has soared in recent years. Farmers in West Africa, where 70% of the world's cocoa is harvested, have been struggling with climate-related issues that have decimated their cocoa production. It's estimated 400,000 tonnes less of cocoa has been produced over the last few years, hiking the price significantly.
Reuters
an hour ago
- Reuters
Dollar steadies after rally, focus shifts to US-China trade talks
June 9 (Reuters) - The dollar held steady against all major currencies on Monday, as exuberance over an upbeat U.S. employment report gave way to caution ahead of pivotal U.S.-China trade talks set to take place in London later in the day. The talks come at a crucial time for both economies, with China grappling with deflation and trade uncertainty dampening sentiment among U.S. businesses and consumers, prompting investors to reassess the dollar's safe-haven status. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are expected to represent the U.S. at the trade talks, while vice premier He Lifeng would likely be present with the Chinese delegation. "A deal to keep talking might be better than nothing, but unless we see a concrete breakthrough, the impact on sentiment is likely to remain muted," said Charu Chanana, chief investment strategist at Saxo Markets. Friday's upbeat U.S. jobs report yielded some relief for investors following other bleak economic data last week. The dollar advanced against major peers after the employment report, which cut weekly declines in the dollar index by more than half. However, it is still down by more than 8.6% for the year. On Monday, the yen firmed 0.10% at 144.750 per dollar, as data showed Japan's economy contracted at a slower-than-expected pace in the January-March period. The Swiss franc was steady at 0.8221 per dollar by 0041 GMT. The euro was last flat at $1.1399, while the sterling fetched $1.3535. The dollar index, which measures the U.S. currency against six others, was steady at 99.169. The yield on 10-year Treasury notes was flat in early Asia trading, after a more than 10 basis points jump on Friday. New Zealand's dollar last bought $0.6020, while the Australian dollar inched up 0.1% at $0.65 in light volumes as markets were closed for a public holiday. An inflation report out of the U.S. for the month of May will be in the spotlight later in the week as investors and Federal Reserve policymakers look for evidence on the damage trade restrictive policies have had on the economy. Fed officials are in a blackout period ahead of their policy meeting next week, but they have signalled that they are in no rush to cut interest rates and signs of better-than-feared economic resilience are likely to further cement their stance. Interest rate futures indicate that investors are anticipating the central bank may cut borrowing costs by 25 basis points, with the earliest move expected in October this year, according to data compiled by LSEG. "May is the first month where the impact of Trump's 10% universal tariff on imports ex-USMCA is expected to show. The Fed will want a few months of inflation data in order to judge the tariff impact and most importantly, its persistence," analysts at ANZ Bank said. Elsewhere, China's offshore yuan was last at 7.187 per dollar ahead of inflation and trade data.
