{"id":14280,"date":"2019-05-23T00:00:00","date_gmt":"2019-05-23T00:00:00","guid":{"rendered":"https:\/\/crypto-economy.com\/2019\/05\/23\/binance-ceo-cz-files-lawsuit-against-sequoias-chinese-division-for-reputational-damages\/"},"modified":"2019-05-23T00:00:00","modified_gmt":"2019-05-23T00:00:00","slug":"binance-ceo-cz-files-lawsuit-against-sequoias-chinese-division-for-reputational-damages","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/binance-ceo-cz-files-lawsuit-against-sequoias-chinese-division-for-reputational-damages\/","title":{"rendered":"Binance CEO CZ Files Lawsuit against Sequoia\u2019s Chinese Division for Reputational Damages"},"content":{"rendered":"

Binance<\/strong> <\/a>co-founder and CEO Changpeng \u2018CZ\u2019 Zhao is suing a division of venture capital giant Sequoia Capital for reputational damages<\/strong> in addition to what CZ calls a \u201closs of chance to raise capital\u201d during favorable times.<\/p>\n

<\/p>\n

The lawsuit is a countersuit to an earlier suit by the Chinese division of Sequoia Capital in January 2018 that resulted in an injunction against Zhao to refrain from seeking capital for three months ending March 1st<\/sup>, 2018.<\/p>\n

\"binance-demanda\"<\/a><\/p>\n

Sequoia\u2019s claimed that Zhao had breached a contract of exclusivity<\/strong> during a Series A funding round with negotiations that were ongoing with the VC. According to the court cases, Sequoia accused Zhao of engaging in talks with competing IDG Capital.<\/p>\n

Back in December 2017 prior to being granted the injunction order against Zhao, Sequoia had held an ex-parte meeting which was considered an abuse<\/strong> of process by a Deputy High Court Judge in a hearing on April 11th,<\/sup> 2018.<\/p>\n

The judge said that \u201cI agree that the use of the ex parte procedure without notice to D. [Defendant, Zhao] was an abuse of process,\u201d adding that \u201cIf the Injunction were not already spent, I would have set it aside on that basis alone.\u201d<\/p>\n

Now Zhao is seeking reputation damages for the lawsuit against him back in January 2018 as well as compensation<\/strong> for the missed opportunity to raise funds during the injunction period. According to court files, Zhao stated that:<\/p>\n

\u201cThe 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.\u201d<\/em><\/p>\n

The lawsuit was filed earlier this week in the High Court in Hong Kong. Zhao also included a request before the court chambers on an order for \u201cimmediate summary of the assessment of damages.\u201d<\/p>\n

A special team is expected to be dispatched to assess the monetary and material loses that Zhao may have suffered due to the injunction in order to present the information on the hearing of the case.<\/p>\n

The court\u2019s website<\/a><\/strong> lists the case for hearing on June 25th<\/sup> with the case number HCMP 2770\/2017.<\/p>\n","protected":false},"excerpt":{"rendered":"

Binance co-founder and CEO Changpeng \u2018CZ\u2019 Zhao is suing a division of venture capital giant Sequoia Capital for reputational damages in addition to what CZ calls a \u201closs of chance to raise capital\u201d during favorable times.<\/p>\n","protected":false},"author":5,"featured_media":14282,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,84,74],"tags":[4601,5001],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/14280"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=14280"}],"version-history":[{"count":0,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/14280\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/14282"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=14280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=14280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=14280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}