Recently, Binance CEO Zhao Changpeng, was taken to court by a section of Sequoia Capital China (SCC). According to report, the Hong Kong high court ruled in favor of Zhao Changpeng. In the case, Sequoia alleged that they had earlier entered into an ‘exclusivity agreement with the Binance CEO which was violated by Zhao approaching other promising investors.
The Binance CEO, in defense, refuted
all the charges and claims brought against him by Sequoia. After the Hong Kong
high court heard submissions from all parties involved, they finally came to a
conclusion which favored Zhao Changpeng. In an announcement posted on Binance’s
blog, Binance summarized the proceedings at the Hong Kong high court. The statement read,
“SCC 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.”
SCC went to court after Mr.
Zhao consulted with another investor thus breaking the
exclusivity agreement reached last year. It is presumed that the investment
talks between SCC and Changpeng were not agreed upon because SCC wanted a
bigger share of Binance something that did not correlate with the amount of
investment they were ready to commit. By then, SCC wanted an 11 percent
share by investing $80M.
Even though the Hong Kong high
court ruled in favor of Binance CEO, SCC has been ordered by the court to pay
the cost incurred by Zhao in the course of the case proceedings. Changpeng was
not in a position to comment farther on the current development as
the “parties are subject to confidential arbitration proceedings”
With Binance being the largest cryptocurrency exchange in the world, how much
do you think 11% share of the exchange would be?
Send your
thoughts and comments.
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