The United Kingdom Court of Appeal has partially rejected a legal action brought by Bitcoin SV investors for the main exchanges of Crypto, in particular Binance, for having allegedly plotted to bring the token back in 2019.
In a judgment rendered on May 21, the court ruled that investors who held BSV during the radiation period (classified as “subclass B”) were not entitled to billions of speculative damage based on the hypothetical growth of BSV.
These investors had claimed more than 8.9 billion British pounds (11.9 billion dollars) in damages, saying that Binance defined disadvantaged holders of the possibility of taking advantage of the potential increase in BSV to a “high-level cryptocurrency” such as Bitcoin (BTC) or Bitcoin Cash (BCH).
The court rejected this theory of “the lower growth effect”, declaring that “the BSV was obviously not a unique cryptocurrency without reasonably similar substitutes”, stressing the own use by the Bitcoin and Bitcoin Cash representative as comparators.
The central complaint of subclass B was that radiation led to a failed opportunity to benefit from the assessment of prices. However, the court determined that these investors were likely to mitigate losses by selling or reinvesting in other cryptographic assets.
“They had a duty to alleviate their losses,” wrote the master of the Rolls Sir Geoffrey Vos. “They cannot recover losses that they could have reasonably mitigated.”
In relation: Bitcoin SV investors try to resuscitate the 2019 binance trial
The Court lowers the argument of “loss of a coincidence”
The appeal also disputed the application by the court of the “market mitigation rule”, arguing that such problems should be left to the trial.
The court rejected this concept, indicating that the rule clearly applies to freely negotiable assets such as the BSV, and that damage must be measured shortly after radiation.
An additional argument concerning the “loss of a chance” to benefit from future price gains was also canceled. The court judged “impartial in principle”, noting that “cryptocurrencies are, by nature, volatile investments”.
Binance’s limited withdrawal request finally succeeded, the court declaring that even if certain holders were not aware of the radiation, “they could never claim more than the total value of their detention before the more quantifiable consecutive cancellation events.”
In relation: Binance wants arbitration for all members of the class of securities class
Binance seeks to reject the FTX trial
On May 16, Binance filed a request for rejection of a legal action of $ 1.76 billion filed by the succession of the FTX, arguing that complaints are legally defective and an attempt to transfer the responsibility of the collapse of the FTX.
The exchange said that the fall of the FTX came from internal fraud, not from external manipulation, citing the conviction of Sam Bankman Fried on several accusations of fraud.
Binance asked the court to reject all complaints with prejudice. The FTX domain has not yet made its response.
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