The UK Court of Appeal has partially dismissed a lawsuit brought by Bitcoin SV (BSV) investors against major cryptocurrency exchanges, including Binance. The investors had alleged that these platforms conspired to delist the token back in 2019.
In a ruling dated May 21, 2025, the court determined that investors who held BSV during the delisting period—classified as “Subclass B”—were not entitled to speculative damages worth billions of pounds based on hypothetical growth of the token.
These claimants had sought more than £8.9 billion (approximately $11.9 billion), arguing that Binance’s actions deprived them of potential profits had BSV risen to become a "top cryptocurrency" like Bitcoin (BTC) or Bitcoin Cash (BCH).
The court rejected this "lost growth effect" theory, stating, "BSV was clearly not a unique cryptocurrency without reasonably similar alternatives." The judges also noted that the claimants themselves used Bitcoin and Bitcoin Cash as comparative benchmarks.
Court Rejects “Missed Opportunity” Argument
The core argument from Subclass B was that the delisting resulted in a lost opportunity to profit from price appreciation. However, the court found that these investors had ample opportunity to mitigate their losses by selling or reinvesting in other crypto assets.
“They were under a duty to mitigate their loss,” wrote Sir Geoffrey Vos, Chancellor of the Court of Appeal. “They cannot recover losses that could have been avoided by taking reasonable measures.”
The appeal also challenged the lower court’s application of the "market mitigation rule," suggesting that such matters should be left for trial. The higher court dismissed this argument, noting that the rule clearly applies to freely tradable assets like BSV and that damages must be assessed shortly after the delisting.
Additional claims regarding "missing out on future price increases" were also rejected. The court ruled this argument "flawed in principle," emphasizing that "cryptocurrency is inherently a volatile investment."
Binance’s application for a partial strike-out ultimately succeeded. The court clarified that even if some holders were unaware of the delisting, "they could not claim more than the total value of their holdings before the delisting event, plus any quantifiable consequential losses."
Broader Legal Context for Crypto Exchanges
This ruling carries implications for how cryptocurrency exchanges approach listing and delisting decisions, and how investors perceive legal recourse in similar situations.
While the court did not fully dismiss the entire lawsuit, its decision narrows the scope significantly, focusing on measurable damages rather than speculative future gains.
Legal experts suggest that the judgment reinforces the principle that investors must take reasonable steps to limit their losses when market conditions change—a concept well-established in traditional finance but now clearly applicable to digital assets.
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Frequently Asked Questions
What was the main reason the court dismissed the BSV investors’ speculative damages claim?
The court found that investors could have mitigated losses by selling or reinvesting following the delisting. It also ruled that BSV was not a unique asset without alternatives, making hypothetical growth claims unenforceable.
Does this ruling mean the entire lawsuit against Binance was thrown out?
No, the court only partially dismissed the claims. The ruling specifically addressed—and rejected—the speculative “lost growth” damages sought by Subclass B investors.
How does this decision affect future crypto-related lawsuits?
This ruling emphasizes that courts may not award damages based purely on hypothetical profits, especially in volatile markets like cryptocurrency. It also reinforces investor duty to mitigate losses.
What were the investors seeking in compensation?
The plaintiffs sought £8.9 billion ($11.9 billion) in damages, claiming that the delisting prevented BSV from achieving growth comparable to major cryptocurrencies like Bitcoin.
Was BSV the only cryptocurrency mentioned in the case?
No, the claimants themselves compared BSV to Bitcoin (BTC) and Bitcoin Cash (BCH) in arguing their case for lost growth potential.
What should investors consider when a token is delisted from a major exchange?
Investors should review their positions, consider selling or swapping assets promptly, and stay informed about market changes and legal precedents that might affect their holdings.