A unit of California-based venture haber rock hard Sequoia Renta is suing Binance, the world&rsquo,s largest cryptocurrency exchange by trading volume, following the disintegration of negotiations the two parties, according to a report by Bloomberg.
The lawsuit against Binance wasgoed filed te a Hong Kong court by Sequoia Hacienda, and the court&rsquo,s filings were dated March 26 and April 24. Moreover, the documents exposed the details of the sour negations inbetween the two parties and the process of valuation of the exchange by the venture haber rigid.
The court filings detailed that the CEO of Binance entered into negotiations with Sequoia Hacienda regarding an investment ter the exchange ter August of last year. The overeenkomst would have given the venture renta rigid almost 11 procent stake of the exchange, which, at the time, wasgoed valued at about $80 million.
However, after months of negotiations, the overeenkomst fell bijzonder ter December, after the meteoric rise of Bitcoin and other cryptocurrencies.
The court document showcased that on December 14, Binance informed Sequoia Caudal that its existing shareholders are against the overeenkomst, spil they believed that the exchange wasgoed undervalued by the VC rock-hard. Meantime, another venture caudal rigid &ndash, IDG Renta &ndash, approached Binance and its investment suggest wasgoed significantly higher than Sequoia Haber &ndash, $400 million and $1 billion consecutively with two rounds of funding along with a higher valuation.
Bloomberg pointed out that the current punt is whether Binance has violated any exclusivity of the overeenkomst with Sequoia Renta by injecting into talks with IDG Hacienda. Tho’ the parties were lodging the dispute with arbitration, the packing of a lawsuit made the kwestie public.
Moreover, the Hong Kong court ordered a improvised injunction to Binance, which kroegen the exchange from coming in into negotiation with any institutional investors until further notice.
Dominance of Binance
Zhao Changpeng founded Binance te , which did not even have an annual anniversary yet. However, the nine-month-old exchange is predominant the cryptocurrency market with its broad range of trading options. According to CoinMarketCap.com, the exchange lodged $Three.9 billion worth of cryptocurrency trading orders ter last 24 hours, higher than any of its leading competitors.
Moreover, the exchange&rsquo,s success has made its founder a billionaire, with a netwerk worth of around $Two billion, and he wasgoed also featured on the voorkant of Forbes tv-programma.