The founder of one of the largest bitcoin exchanges in the world in favor of the defendant on the breach of contract on granting of exclusive rights.
As reported by Bloomberg, against the CEO of Binance Changpeng Zhao was sued in Hong Kong, a California venture capital firm Sequoia Capital.
Citing court documents dated 26 March and 24 April, the publication writes that the subject of the proceedings was the discussion of the Sequoia capital investment in the stock exchange Binance, which began in August last year, when the launch of the trading platform.
As you continue negotiations, Zhao allegedly said Sequoia in mid-December, when the price of bitcoin has reached a historic high above $20 000 that the proposed $80 million for 11 percent stake in his company do not meet the expectations of shareholders.
Simultaneously, Zhao held talks with another potential investor, IDG Capital, which has expressed willingness to invest in the stock exchange in two stages, giving it a much higher estimate: $400 million and $1 billion respectively. Thus, Sequoia accuses Zhao of breach of contract on granting of exclusive rights.
Bloomberg notes that, although initially the company intended to resolve the dispute in arbitration, Sequoia appealed to the High court of Hong Kong to prevent further negotiations Binance with potential investors.
Hong Kong court allegedly told Zhao not to negotiate with other investors before making a decision.