One of the largest venture firms is suing the founder of the largest cryptocurrency exchanges for violation of the exclusive agreement.
According to Bloomberg, Zhao Canepina, which is the head and founder of Binance sues one of the largest investment firms – Sequoia Capital .
It is associated with means which Sequoia had to invest in Binance, in August last year, when the platform started its work.
As negotiations, namely in December 2017, when the price of bitcoin has reached its highest level at around $ 20,000, Zhao stated that the proposed assessment in the amount of $ 80 million for 11 percent stake in the company does not meet the expectations of shareholders.
However, despite the fact that the transaction failed, Sequoia accuses Zhao, at the same time he was negotiating with another potential investor IDG Capital, which expressed interest in investing in Binance for two rounds of funding, and valued the company at $ 400 million and $ 1 billion respectively. Thus, Sequoia accuses Zhao in violation of the exclusivity agreement.
Bloomberg said that although the company had planned to settle the matter in arbitration, Sequoia went to court to prevent Binance to negotiate with other potential investors.
The court in Hong Kong ordered Zhao did not negotiate with other investors until until after the hearing in this case.
Representatives Binance has not commented on the incident.