Binance CEO files a new lawsuit against Sequoia Capital after his case dismissed

23 May, 2019 | Updated: 23 May, 2019
by Fifi Arisandi
News
Binance CEO files a new lawsuit against Sequoia Capital after his case dismissed

Crypto mogul, Changpeng Zhao filed a new lawsuit against Sequoia Capital in Hong Kong high court on May 20th. 

The filing was made after the Hong Kong International Arbitration Centre dismissed all Sequoia Capital’s claims that accused CZ of breaching an exclusivity agreement while negotiating Binance’s Series A equity financing.

To recap what happened between CZ and Sequoia, it all started when CZ held a meeting with IDG Capital in 2017, while still in the middle of discussion with Sequoia for a Series A round.

Sequoia accused CZ of breaching exclusivity, however, the moves they took were claimed as "abuse of process" by a Deputy High Court Judge, following a hearing on April 2018.

TL;DR, Sequoia’s accusation against CZ was dismissed on December last year, quoting the announcement, “The Tribunal finds that that the negotiations with IDG were not in respect of a ‘rival transaction’ to the Series A Financing but were in respect of a proposed Series B financing transaction which was not in competition with the Series A Financing and which did not become a Series A Financing.”

After the dismissal, the CEO of Binance decided to fire back by accusing Sequoia Capital China of defamation that prevented him from raising money at a significant amount, thus demands a compensation from the VC, without mentioning the exact amount. 

In more details, according to the application sent to the Hong Kong high court via his lawyers, CZ demanded an inquiry to be held to determine if he “has sustained any and what damages” as a result of the injunction order Sequoia obtained on Dec. 27, 2017, which prevented Zhao from raising capital from other investors until March 1, 2018

Quoting his statement in the filing, “The injunction order has caused loss to me for which I am entitled to reasonable compensation by Sequoia. In particular, I have suffered i) a loss of chance to raise capital through successive rounds of financing at increasing high valuations; and ii) damage to my reputation.”

The application also mentioned an order for “immediate summary of assessment of damages” and has already obtained a hearing schedule on June 25th, as reported by Coindesk.

No comments have been made by Sequoia Capital as of writing time. 


B as in Binance CEO?? 

Stick with Chepicap for updates on further development of this case.

Follow Chepicap now on Twitter, YouTubeTelegram and Facebook!

Chepicap is now LIVE in Blockfolio! This is how you receive our latest news in your portfolio tracker!  

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage