Zhao Changpeng, the founder of the world’s largest
cryptocurrency exchange by trading volume “Binance” refuted an allegation for
breaching an exclusive agreement.
In a blog post published Thursday
on Binance Support, issued a
response to the report yesterday which indicated that Zhao is currently facing
a lawsuit filed with the Hong Kong High Court by venture capital giant Sequoia,
who was once a potential investor of Binance.
"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," the company said.
According to report, the case
stems from the collapse of once a potential capital injection deal from
Sequoia. While the talk fell through, the venture capital firm brought up the
lawsuit against Zhao, alleging him for breaking an exclusivity agreement by
talking to another potential investor IDG Capital in December last year.
While a previous Hong Kong court order has barred Zhao from
talking to other potential investors, Binance suggested that the court may have
had a second thought now on whether the order should be issued.
"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 SCC," the company said.
While refraining from explaining details in regards to the next step of
the case, the company said SCC was ordered to pay Mr. Zhao's costs in
relation to the legal proceedings.
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