Changpeng Zhao, CEO of Binance and cryptocurrency billionaire is being sued by Sequoia Capital.
Binance has been in the news a lot lately for all of the right reasons and the worlds largest cryptocurrency trading platform seems to be going from strength to strength. Following recent news, in which. Changpeng Zhao announced that Binance would be moving their operations to Malta. The legal dispute appears to be coming from Hong Kong high court and is between Chnagpeng Zhao and a unit of Sequoia Capital after a previously agreed deal appears to have broke down.
According to the official court fillings, which were reported on Bloomberg to be a deal worth around $80 million in which Zhao and Sequoia were negotiating an 11% stake of Binance. These talk began in August 2017 but as the price of Bitcoin soared to record highs, it is believed that the negotiations broke down as Zhao and his fellow Binance shareholders believed the deal undervalued the exchange. Zhao was also approached by IDG Capital, another Venture Capital firm, around the same time with an offer that would have injected two rounds of funding into Binance of $400 million and $1 billion… Much higher offers than the original $80 million
The filings shed light on how Zhao’s has valued Binance, the exchange he started just nine months ago, landing him on the cover of Forbes magazine and helping him amass a personal fortune he claims is $2 billion.
“At issue is whether Zhao’s talks with IDG Capital violated his exclusivity agreements with Sequoia,” While Sequoia and Zhao are planning to settle their dispute in arbitration, the disagreement became public after Sequoia turned to Hong Kong’s High Court and secured a temporary injunction barring Zhao from negotiating with other investors. Bloomberg reported.
Zhao and Sequoia are planning to settle this dispute and this should not have any negative impact on Binance as an exchange. If anything this should act as encouragement for Binance holders and cryptocurrency traders alike, as this just demonstrates how valuable Binance and cryptocurrencies are actually becoming.