Sequoia Sues Binance Founder over Failed Financing Deal

Sequoia Sues Binance Founder over Failed Financing Deal

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April 25, 2018 by Bitzamp
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Sequoia Sues Binance Founder over Failed Financing Deal Zhao Changpeng, the billionaire founder of one of the world’s largest cryptocurrency exchanges, Binance, has been sued by Sequoia Capital, according to a report by Bloomberg. Also Read: Cryptocurrency Exchange Binance Has Led a $30 million Fundraising Round For MobileCoin Sequoia sued Zhao over a funding deal
Bitzamp

Sequoia Sues Binance Founder over Failed Financing Deal
Zhao Changpeng, the billionaire founder of one of the world’s largest cryptocurrency exchanges, Binance, has been sued by Sequoia Capital, according to a report by Bloomberg.

Also Read: Cryptocurrency Exchange Binance Has Led a $30 million Fundraising Round For MobileCoin

Sequoia sued Zhao over a funding deal gone awry, according to Hong Kong court filings on March 26 and April 24. The filings shed light on Zhao’s interactions with big-name venture capital firms and reveal details about how they’ve valued Binance, the exchange that Zhao started just nine months ago.

It’s alleged that Zhao and Sequoia began negotiating terms of investment in August, when the cryptocurrency platform first launched. The deal between the two would have given the venture capital firm an 11 percent stake, valuing Binance at $80 million.

Around the same time, IDG Capital approached Zhao with an offer of two rounds of funding that would place Binance at a much higher valuation: US$300 million and US$1 billion, respectively (Zhao said that a conservative estimate of Binance’s valuation should be around US$3 billion). As such, Sequoia is accusing Zhao for breaching the claimed exclusivity agreement.
The court in Hong Kong has reportedly ordered Zhao not to talk to other investors until a hearing can be held to rule whether Zhao is liable over the allegations.


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