Binance CEO Denies Allegations By Sequoia Capital
Founder of the world’s largest cryptocurrency exchange, Binance chief Zhao Changpeng has officially denied all accusations put forward by venture capital firm Sequoia Capital regarding an unsuccessful funding deal.
According to reports released yester, a subsidiary of Sequoia Capital China charged Zhao in a Hong Kong lawsuit over allegations that the crypto exchange founder had gone against the terms of an exclusivity agreement by having discussions with other prospective investors. It is suspected that the agreement between the two turned soar following the inability of Sequoia’s valuation to impress Binance shareholders at a suggested $80 million.
The disagreement becomes public after Sequoia got a temporary injunction earlier in December, to prevent Zhao form participating in dialogues with other companies, such as IDG Capital which is claimed to have given two cash additions of $400 million and $1 billion in appreciating Binance higher than that made by Sequoia.
On Thursday, Binance commented in a statement saying the ‘ex parte conjunction’ was acquired without the knowledge of Zhao. Yet, Zhao confronted the injunction in April and the Hong Kong High court immediately terminated the judicial order.
According to Binance, “[T]he 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 SCC (Sequoia Capital China).”
The announcement went further to state that, “Mr. Zhao denies all of SCC’s allegations relating to the present dispute,” saying the SCC was asked by the Hong Kong High Court to settle Zhao’s legal expense according to the injunction proceedings.
