Bittrex Delists BSV as U.S. Offramps Dry Up

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  • Bittrex has delisted BSV, marking the end for BSV offramps in the U.S.
  • The exchange appears to have delisted the token on security grounds, but BSV followers suspect a bigger conspiracy
  • BSV has been delisted from several high profile exchanges in the past few months, and is suing others for doing so

U.S.-based exchange Bittrex has become the latest exchange to delist BSV, effectively pulling up the drawbridge for U.S. users and forcing them to look into the darker reaches of the crypto internet to cash out their coins. BSV has been suffering from various technical and reputational issues ever since it was formed in 2018, and it seems that the actions of its figurehead, Crag Wright, may now be contributing to the well drying up for beleaguered BSV holders.

Deslits Started Following Wright Lawsuits

BSV has been a controversial coin in the crypto space ever since it was forked into existence in November 2018. The split from Bitcoin Cash was spearheaded by Wright, who says it is the one true Bitcoin and calls Bitcoin and Bitcoin Cash ‘airdrops’, and has been funded by Calvin Ayre, an Antiguan resident once on the U.S. Immigration and Customs Enforcement’s most wanted list.

BSV was delisted from several major exchanges in 2019 when Wright began his lawsuit spree against those he said had defamed him (a matter he is suing them over for the tidy sum of $12.2 billion as well as another separate lawsuit), but in the years since it has also steadily been delisted from other exchanges, including BitOasis, OKCoin, Independent Reserve, Bitfinex, and Robinhood, and now Bittrex has added its name to the list.

Like most other exchanges, Bittrex didn’t give the precise reasons for its delisting, which was enough for the BSV community to make extravagant claims that the U.S. government wants to keep the dollar as the world’s reserve currency, and so doesn’t want the masses buying BSV:

However, rather undermining this point was Bittrex’s list of attributes it considers when deciding on whether a coin should be added or removed:

Some of the criteria bear a striking resemblance to the rationale offered by Robinhood in a recent filing with the Securities and Exchange Commission, which cited security concerns, such as “an inherent decrease in the level of security due to the splitting of some mining power across networks, making it easier for a malicious actor to exceed 50% of the mining power of that network.” This, of course, happened to BSV in 2021, as Robinhood noted. The exchange, which booted BSV in January, also stated that it will delist a forked coin if it “does not have support from a majority of the affiliated third-party miner and developer community”, which it intimated BSV does not.

Legal Issues Also Concerning Exchanges

Allied to these security concerns is the launching of a notary tool called the Blacklist Manager on the BSV blockchain last year, which was called a “horrific backdoor” by Bob Summerwill, Executive Director at Ethereum Classic Cooperative. The tool allows anyone who says they can prove ownership of stolen coins to force miners to freeze and reissue the coins on the blockchain, with proof equating to a court order or “document of comparable force”. This will be judged by the Bitcoin Association, which advocates for BSV, raising concerns over who will actually be judging these documents.

This has left some exchange operators worried that they could be bogged down in lawsuits from the notably litigious Wright over coins which are alleged to have been stolen and which arrive at the exchange. This fear comes after Bitmart was forced to go to court regarding the coins stolen during the 51% attack.

Add to this the fact that operating a BSV node, which many exchanges do in order to facilitate transactions (or have it forced on them as part of the listing agreement) is typically far more expensive than the fees generated by BSV trading, and it’s a wonder that any exchanges are still supporting it.

Bitcoin Supporters Enjoy a Giggle at BSV’s Expense

BSV is largely unloved by the crypto community for several reasons, and the Bittrex delisting was therefore a good chance for some to have a laugh at the expense of those who advocate for it (being paid or otherwise), and whose position shifts like the wind on certain matters:

There is no word yet on whether Craig Wright plans to sue Bittrex for the delisting as he did with the other exchanges, but at this point one shouldn’t rule out anything.