A UK Court of Appeal has upheld a tribunal decision to strike out the "loss of chance" damages argument in a $13.3 billion class action lawsuit filed by BSV Claims Ltd against major crypto exchanges Binance and Kraken. The lawsuit alleged that the delisting of Bitcoin SV (BSV) in 2019 deprived investors of a chance to benefit from the token’s hypothetical growth, potentially matching Bitcoin (BTC) or Bitcoin Cash (BCH) in value.
The court ruled that these damages were speculative and rejected claims that BSV could have become a top-tier crypto asset if not delisted. It reasoned that investors had an opportunity to sell their holdings and mitigate losses on the open market since BSV had comparable substitutes like BTC and BCH. Holding onto BSV after the delisting was deemed a voluntary investment decision rather than a recoverable loss.
The judgment clarified that the "loss of chance" doctrine was inapplicable because the case centered on direct causation concerning the token’s value absent delisting, not on outcomes depending on third-party decisions. The appellate judge also criticized the absence of a formal scope-limiting order by the Competition Appeal Tribunal, which contributed to the speculative nature of the damages sought.
While the court dismissed the majority of the claims due to speculation, smaller claims for users who lost access or sold at a loss may still proceed. The ruling marks a significant legal setback for BSV investors seeking compensation for the consequences of the 2019 delisting from major exchanges.