Changpeng Zhao, founder of Binance, one of the largest exchanges, denies the accusations of exclusive rights violating, brought against him by the venture company Sequoia Capital, because of the failed deal.
Sequoia Capital negotiated with Binance on investments since August 2017, however in December Zhao informed the company that the amount proposed to it does not meet the expectations of Binance shareholders. Together with this, Zhao negotiated with IDG Capital, which offered a significantly larger amount.
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.
Although the Hong Kong court had previously banned Zhao from negotiating with other potential investors, Binance reported that this ruling was unfounded.
Sequoia 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 [Sequoia].
Although it did not offer any details on the next stage of the lawsuit, the exchange said Sequoia has been ordered to pay Zhao's costs in relation to the legal proceedings