- A UK court has rejected most Bitcoin SV investor claims based on speculative future profits.
- Investors must reduce losses in open crypto markets after asset delisting.
- Only real losses from Bitcoin SV delisting may qualify for limited compensation.
A UK court dismissed most claims in a lawsuit linked to the delisting of Bitcoin SV from major exchanges. The case involved over 240,000 investors represented by Bitcoin SV Claims Ltd. They accused platforms like Binance and Kraken of acting unfairly by removing Bitcoin SV from trading.
Investors Sought Speculative Gains
Investors argued that Bitcoin SV could have reached values similar to Bitcoin if it had remained listed. They believed delistings prevented potential profits. Many claims were based on the idea of missing out on growth rather than experiencing actual losses.
The court found that damages built on future value were speculative. Investors compared Bitcoin SV to Bitcoin and Bitcoin Cash. However, the court ruled that these alternatives weakened the argument. It stressed that cryptocurrencies share similar risk levels.
Delisting Does Not Prove Damage
The court noted that investors were free to act in an open market. After the delisting, they had the option to sell or move their assets. Because of that, the court said investors had a responsibility to limit their losses.
It ruled that any recoverable amount should reflect real asset value at the time of delisting. This decision narrowed the scope of the claim significantly. The idea of being entitled to future gains lacked legal weight.
“Loss of Chance” Theory Rejected
Another key argument was the “loss of chance” claim. Investors believed they lost future profits due to delisting. The court dismissed this, saying the argument relied on uncertain outcomes.
It stated that crypto assets are subject to frequent and extreme fluctuations. Therefore, any damages must be based on actual events. The court confirmed that laws do not allow for damages tied only to potential outcomes.
Market Mitigation Rule Applies
The appeal also challenged the “market mitigation rule.” This rule holds that investors must reduce losses when possible. The court upheld its importance, especially in crypto markets.
It found that since Bitcoin SV could still be traded, investors had ways to manage risks. This ruling reinforced the view that markets remain open and dynamic, even after delistings.
Limited Claims May Proceed
Although most claims failed, a few may move forward. Investors who sold at a loss right after the delistings might receive compensation. Those cases depend on showing actual financial harm, not projected losses.
The court highlighted the need for real evidence in crypto-related lawsuits. It ruled that delisting does not automatically lead to legal liability.
