As reported by Bloomberg, against the CEO of Binance Changpeng Zhao, a lawsuit was filed in Hong Kong by the California venture capital company Sequoia Capital.
Referring to the court documents, the publication says that the subject of the proceedings was the discussion of Sequoia's investment in the Binance exchange, which began last August when the trading platform was launched.
As the talks continued, Zhao allegedly stated Sequoia in mid-December, when the cost of bitcoin reached a historic high above $ 20,000, that the proposed $ 80 million for an 11 percent stake in his company did not meet the expectations of shareholders.
At the same time, Zhao negotiated with another potential investor, IDG Capital, who expressed his readiness to invest his funds in the exchange in two stages, giving it a much higher estimate: $ 400 million and $ 1 billion, respectively. Thus, Sequoia accuses Zhao of violating the treaty on the granting of exclusive rights.
Bloomberg notes that, although initially the companies intended to resolve the dispute arbitrarily, Sequoia applied to the High Court of Hong Kong to prevent further negotiations with potential investors from Binance.
The Hong Kong court allegedly ordered Zhao not to negotiate with other investors until a decision on the case was made.