According to reports, the founder of Binance is being sued by VC group Sequoia over allegations that he signed an exclusivity agreement with IDG Capital.
Zhao Changpeng, the Founder Binance cryptocurrency exchange is being sued by Sequoia Capital, a VC firm headquartered in Menlo Park, California.
According to the report of Hong Kong court filings on March 26 and April 24, Sequoia sued Zhao over a failed fund dealing.
Binance, the largest cryptocurrency exchange was founded just 9 months ago and has impact full growth at present. Such that, Zhao Changpeng became a billionaire with its massive growth. Meanwhile, crypto exchange attracted the interest of Venture Capital outlooks.
Last year in the month of August, Zhao had a deal with Sequoia Capital over a invest about $80 million and in return 11 percent stake in Binance. However, over the months both parties remained under negotiations but when the bitcoin hit high in December the talk where slightly apart. At a moment, Zhao came into negotiation with another VC firm and IDG Capital which had generous offers. However, one valued Binance at $400 million and other at $1 billion.
The Sequoia Capital said,
“Mr. Zhao denies all of Sequoia’s allegations relating to the present dispute. As the substantive issues in dispute between the parties are subject to confidential arbitration proceedings, Mr. Zhao will make no further comment on the matter”.
Consequently, Sequoia filed a lawsuit against the Binance founder for violating exclusivity agreement with IDG Capital. However, Sequoia acquired a temporary injunction from Hong Kong High Court as to prevent Zhao into others dealings.
The company said that:
“SCC [Sequoia Capital China] obtained an ex parte injunction without notice against Mr. Zhao at the end of December 2017. After a hearing attended by both parties’ legal representatives in April 2018, the High Court of Hong Kong has now determined that this injunction should not have been granted, as it had been improperly obtained and constituted an abuse of process by SCC”.
According the Zhao Changpeng, Binance, the largest cryptocurrency exchange in its 2nd quarter has earned $200 million. Besides, with the value at conservative estimate of $3 billion.
Additionally, He also unveils his plan on setting up an office in Malta. He said,
“Malta is very progressive when it comes to crypto and fintech”.
Although, it seemed difficult for crypt exchanges to make permanent base after the Japan and china’s crackdowns.