Binance seeks to reduce size of $13bn lawsuit against it

The crypto exchange found itself in hot water in a court of London after plaintiffs alleged that the company tried to delist BSV, colluding with another exchange to do the same

Binance is on the receiving end of investors’ ire with a lawsuit against the company alleging that it colluded with another prominent exchange to delist the Bitcoin Satoshi Vision cryptocurrency, BSV, and thus tank its value.

Binance allegedly drew a plan of action invoking Kraken, and other cryptocurrency exchanges to push through and see the BSV decline. All suspected companies are being sued in the London Competition Appeal Tribunal as part of a class-action lawsuit involving 200,000 BSV owners.

Binance is hoping to have the size of the claim, currently sitting at the eye-watering $13 billion reduced to a much smaller amount. Yet, BSV’s plaintiffs have a long way to go. They need to get the collective proceedings regime certification, which is tantamount to a class-action lawsuit in the United States.

The lawyers representing the BSV investors argue that the practices exhibited by the exchanges were anti-competitive and purposefully detrimental to investors. Yet, Binance is trying to navigate the case as skillfully as its legal defense allows it to.

One of the points that Binance is flatly objecting to is that BSV was on its way to becoming a mainstream cryptocurrency and that this success did not materialize because of any action the exchange might have undertaken. Yet. BSV has had issues of its own to deal with.

Doubts about the blockchains’ reliability have been brought up after a series of 51% attacks, a type of cyber infiltration that tries to take over an entire blockchain, effective suspending the peer-to-peer safeguards, and centralizing the execution of transactions, usually hijacked by nefarious parties.

Binance lawyer Brian Kennelly said that people who chose to stick to BSV could have in fact sold it off and invested in another crypto asset. Kraken, the other named party in the lawsuit, among several exchanges, has called the case brought against investors without merit. Meanwhile Binance has argued that the claim – if any such claim is possible – must be much lower than the currently floated $13 billion sought by plaintiffs.

Binance found itself in a bit of a tight spot after its boss, Changpeng Zhao, more commonly known to crypto insiders by his initials, CZ, was sentenced to four months in prison and the company was fined $4.3 billion in US courts.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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