Home Business Former watchdog chairman sues Binance and Kraken for £10 billion in first UK crypto competition claim

Former watchdog chairman sues Binance and Kraken for £10 billion in first UK crypto competition claim

Former watchdog chairman sues Binance and Kraken for £10 billion in first UK crypto competition claim

The former chairman of the Competition and Markets Authority has sued four crypto companies, including Binance, for almost £10 billion for alleged collusion to remove a major cryptocurrency from their exchanges.

Lord David Currie, who chaired the CMA from 2014 to 2018, has filed a lawsuit against the crypto giant as well as exchanges Kraken, Bittylicious and Shapeshift for their delisting from the BSV token.

The lawsuit, filed July 29 with the Competition Appeal Tribunal, is the first crypto competition complaint in the UK and comes on behalf of around a quarter of a million investors in BSV.

Lord Currie said investors lost £9.9billion in 2019 due to alleged “anti-competitive behaviour” by stock exchanges.

In a statement, he described the case as “an opportunity to demonstrate that competition law applies in the area of ​​crypto assets in the same way as it applies to other economic activities.”

Lord Currie set up a new company, BSV Claims, to carry the case.

Financial news approached Binance, Kraken, Bittylicious, Shapeshift, BSV Claims and Lord Currie for comment.

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The complaint is the latest example of British lawyers seeking to apply broader financial services laws to the digital asset sector.

In July, a High Court judge ruled that exchanges should be tasked with preventing criminals from moving assets off their platforms to avoid scrutiny, in a ruling that experts said treated crypto from the same way as traditional finance.

What is BSV and why is it controversial?

BSV, also known as Bitcoin Satoshi Vision, was created with the aim of improving bitcoin, the original cryptocurrency. Binance removed the token from the list in April 2019, after a Twitter spat between Chief Executive Changpeng “CZ” Zhao and the token’s creator, Craig Wright.

CZ tweeted that Wright was “poisoning” the bitcoin community by threatening to sue people who called him a fraud for claiming he was pseudonymous bitcoin creator Satoshi Nakamoto. He added, “Craig Wright ain’t Satoshi. More of that shit we’re deleting!”

The Binance boss then urged others to follow suit, which Kraken, Bittylicious and Shapeshift did within 24 hours.

Erik Voorhees, CEO of Shapeshift, referenced CZ in his next announcement: “We share the sentiments of @binance and CZ. We have decided to withdraw Bitcoin SV #BSV from @ShapeShift_io within 48 hours.

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Wright, an Australian computer scientist who lives in Surrey, continues to claim he is Nakamoto, which has neither been proven nor disproved.

The Competition Appeal Tribunal will decide whether the case will go to trial. Velitor law firm acts for BSV Claims.

To contact the author of this story with comments or news, email Alexander Daniel


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