Regulation
Binance, ShapeShift, Kraken Refuse $9B Compensation For Bitcoin SV Delisting
The Competition Appeal Tribunal is currently hearing a high-stakes legal challenge brought by BSV Claims Ltd. The case is filed against several major cryptocurrency exchanges, including Binance, Kraken, and ShapeShift. The hearing, which began on June 5 under sunny skies in London, revolves around the 2019 delisting of Bitcoin SV (BSV).
Binance, Kraken, ShapeShift & Others Deny $9B Compensation
The BSV delisting followed controversial claims by Craig Steven Wright asserting that he is Satoshi Nakamoto, the pseudonymous creator of Bitcoin (BTC). Moreover, BSV Claims Ltd. is demanding a staggering $9 billion in compensation on behalf of BSV holders.
The plaintiffs argue that the delisting deprived Bitcoin SV investors of significant growth opportunities. In addition, the company alleges that the exchanges’ actions constituted collusion and unfairly influenced the market. This eventually resulted in substantial financial losses for BSV investors.
According to BSV Claims Ltd., the losses were calculated based on the performance of other cryptocurrencies between 2019 and 2024. Additionally, they suggested that BSV holders missed out on substantial gains they might have realized had BSV not been delisted.
The defendants, comprising Bittylicious Limited, Payward Limited (parent company of Kraken), ShapeShift Global Limited, Payward, Inc., ShapeShift AG, and Binance Europe Services Limited, have assembled formidable legal teams to contest the claims. They argue that BSV investors had ample opportunity to sell their tokens following the delisting announcements.
Furthermore, they argued that they could have reinvested in other cryptocurrencies, thereby mitigating any potential losses. In association, the defendants assert that BSV holders were not subject to any lock-ups that would have prevented them from selling their holdings. Therefore, should not be entitled to compensation for purported lost opportunities.
Also Read: Binance Celebrates As BNB Price Soars Past $700 With ATH, Here’s Why
BSV Claims Spotlights Twitter Polls
Central to BSV Claims Ltd.’s argument are the announcements made on social media, particularly Twitter (now X). They asserted that these posts indicated a coordinated effort among the exchanges to delist BSV. Additionally, the plaintiffs highlighted a poll conducted by Kraken on Twitter and Binance’s public statements as evidence of collusion.
The defendants, however, maintain that their decisions were independently made. Moreover, they noted that the announcements were based on each exchange’s assessment of BSV’s market viability and security concerns. Earlier, Wright’s Satoshi claims were deemed false by the court, which propelled BSV Claims Ltd. to take legal action against Binance and other exchanges.
Also Read: US Lawmakers Pressure Biden To Secure Binance Exec’s Return From Nigeria
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
A wave of controversy has erupted in the crypto community as Celsius Network faces backlash for suing users who withdrew funds prior to the company’s bankruptcy. David Schwartz, the Chief Technology Officer of Ripple, has weighed in on the matter. Moreover, he offered insights into why Celsius might have taken such drastic action.
Ripple CTO On Celsius’ Latest Move
According to a user on X, Celsius Network has initiated lawsuits against numerous users in New York courts. The user expressed frustration, stating, “Celsius Network has officially sued me and thousands of innocent users… because we happened to take our money off the platform 90 days before they declared bankruptcy.”
The crux of the issue lies in the concept of “clawback.” Clawback provisions allow bankrupt companies to recover funds withdrawn by users within a certain period before the bankruptcy filing. In this case, the period is 90 days. Hence, Ripple CTO Schwartz emphasized the legitimacy of these actions in specific contexts, particularly regarding “non-existent ‘profits.’”
He stated, “If you withdrew fake ‘profits’ that were never actually earned or generated, then you didn’t withdraw your own money.” A user responded to the Ripple CTO, highlighting the perceived injustice. They wrote, “Clawback attempt for people who had withdrawn within 90 days of filing for BK. Absolutely disgraceful behavior.”
Schwartz tried clarifying the nuances by asking, “Are they just trying to clawback non-existent ‘profits’? Or are they trying to clawback returns of principal?” Further discourse revealed that Celsius is allegedly pursuing the return of both profits and principal amounts withdrawn within the 90-day period. The original poster detailed, “They started off asking for 27% of all principal as a settlement, which came across as a giant scam.”
Schwartz’s stance on such actions is clear: “Usually, in schemes like this, they don’t go after people who withdrew their own principal unless there’s evidence that they had inside information or connections.” Moreover, the lawsuit’s impact on users has been severe.
Also Read: XRP Price Decline To $0.40; Can The Ripple’s New Try It Feature Change That?
The Other Perspective
The original poster mentioned, “They are asking for outrageous sums of money, basically my entire net worth.” This sentiment is echoed by many in the crypto community, who fear the broader implications of such legal actions. Another user questioned, “Why would they let you keep profits off assets they are saying you didn’t have the right to have?”
Replying to the user, the Ripple CTO provided a different perspective this time. He argued that the losses suffered by users are a result of Celsius’ fraudulent activities. He stated, “Why should an innocent party bear the costs of Celsius’ fraud? Why should the victim have to suffer the additional loss of bearing the costs of a free option they never agreed to give anyone?”
The lawsuits have not only financial repercussions but also emotional ones. The original poster described the emotional turmoil caused by the lawsuits and the substantial legal fees incurred. “I have to spend thousands to retain an attorney,” they lamented.
As the crypto community watches closely, prominent figures like Coinbase CEO Brian Armstrong and TRON founder Justin Sun have been called upon to support the affected users. In addition, they also asked for aid from ZachXBT, a renowned crypto sleuth. The outcome of these lawsuits could set a significant precedent for the industry.
Also Read: Ripple CLO Slams US Authority Over Crypto Regulation Approach
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The U.S. House will vote next week to overturn President Joe Biden’s veto of Staff Accounting Bulletin 121, also known as SAB 121. The bulletin has stirred controversy in the crypto industry. It mandates that firms custodying crypto record customer holdings as liabilities.
House Majority Leader Steve Scalise indicated the vote might occur on Tuesday or Wednesday. Following the veto, the vote is a constitutional obligation. The measure previously passed the House with a 228-182 vote.
Bipartisan Push to Overturn SAB 121 Veto
SAB 121 requires firms holding crypto assets for customers to list these as liabilities. This rule has raised concerns among banks and the crypto industry. They argue it could hinder their ability to safeguard digital assets.
The resolution to overturn SAB 121 has seen bipartisan support. In May, the Senate passed it with a 60-38 vote, including support from Senate Majority Leader Chuck Schumer. However, overturning a veto requires a two-thirds majority in the House and Senate.
From venture capital firm Paradigm, Alexander Grieve noted the challenge but saw potential. “Remember when Biden vetoed the SAB121 rollback? It’s back on the House floor next week.” He pointed out the previous bipartisan support for the FIT21 crypto market structure bill.
Also Read: Craig Wright Faces $1.9M Legal Bill As London Court Issues Freezing Order
Challenges Mount in Overturning Crypto Rule Veto
Despite bipartisan support, overturning the veto remains challenging. The House needs 290 votes, 60 more than the initial 228 votes in favor. Cody Carbone from the Chamber of Digital Commerce expressed doubts about reaching this threshold.
Carbone emphasized the difficulty of changing 60 members’ minds in a week. He acknowledged the efforts for consumer protection and good governance. However, he believes the attempt to override the veto will ultimately fail.
The crypto industry remains hopeful but realistic about the upcoming vote. They recognize the steep hill to climb to overturn the veto. The focus now is on rallying additional support in the House.
The outcome of the vote has significant implications for the crypto industry. If the veto is overturned, it could ease concerns about banks’ ability to safeguard digital assets. Conversely, if it stands, firms may need help complying with SAB 121.
The crypto industry has been vocal about its concerns. They argue that the rule could stifle innovation and hinder the growth of digital assets. The upcoming vote is crucial for determining the regulatory landscape for crypto.
Supporters of overturning the veto emphasize the importance of flexibility for financial institutions. They argue that SAB 121 imposes undue burdens on firms holding crypto assets. The vote will be a crucial indicator of congressional support for the crypto industry.
Also Read: Venezuela’s Digital Asset Remittances Hit Yearly $460 Million
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- Starting Monday, July 8th, Kucoin will charge a 7.5% tax on all transactions made by users registered in Nigeria.
- This decision comes from a regulatory update from the Nigerian SEC.
Kucoin exchange took to Twitter (X) to announce that starting Monday, July 8th, Nigerian users will be charged a 7.5% value-added tax on all transactions. This move, spurred by the Nigerian SEC’s regulatory actions, comes a month after the regulator asked all crypto exchanges and businesses to re-register or risk enforcement action.
This levy may be a sign that the Nigerian SEC is at the early stages of recognising cryptocurrencies, three years after the country’s Central Bank ordered banks to stop transacting with cryptos either for themselves or corporate entities.
The Nigerian government has tried to impose a 10% levy on crypto transactions through the 2023 Finance Act but was unable to enforce it due largely to regulatory opacity.
While the SEC Chairman Emomotimi Agama has not commented on the new tax, the regulator admits that this new rule is part of its plan to regulate crypto.
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