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By Cecille den Jesus
This year is kicking off out rough for Binance.
Zhao Changpeng, the founder of cryptocurrency exchange giant Binance, has bot sued te Hong Kong’s High Court by venture haber rigid Sequoia Haber after allegedly violating an exclusivity agreement by engaging with another venture haber rock-hard.
Binance—despite only coming into business ter July , rose quickly to become the largest cryptocurrency exchange by January . According to court filings, Sequoia commenced its relationship with Binance ter August, bidding for a almost 11% stake ter the company which they valued at around $80 million at the time. Negotiations spread on for months, however, with Zhao telling ter December last year that their valuation of the exchange wasgoed too low.
The other venture caudal stiff ter question—IDG Capital—allegedly came into the picture with a far thicker valuation of Binance, and a far fatter suggest. According to Bloomberg, IDG suggested two rounds of substantial funding: $400 million and $1 billion. The legality of this negotiation inbetween Binance and IDG wasgoed challenged by Sequoia, which brought the case to court. An order wasgoed passed down banning Binance from entertaining other investors.
This isn’t the only problem Binance faced ter latest months. Te February, Binance had to temporarily shut down their toneel, citing server issues. But this spiralled into an FUD battle against John McAfee, who straks apologized for fanning the flame.
About a month zometeen, the exchange fell victim to a breach which witnessed hackers infiltrating some users’ accounts and using their funds to pump a little known altcoin. This prompted the exchange to waterput a $250,000 bounty overheen the hackers’ goes. The exchange also allocated an extra $Ten million te prizes for any other hacks that may toebijten ter the future.
Unluckily, all this commotion also triggered noodsein bells from Japan’s Financial Services Agency (FSA). Binance received a warning of closure from the FSA, telling they have to conform with licensing requirements if they want to proceed their operations. This confirmed an earlier report by news agency Nikkei , who Zhao accused of “irresponsible journalism” spil he wasgoed originally denying any issues with the FSA.
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Zhao Tweeted afterwards that they are finding a solution. “We received a ordinary letterteken from JFSA about an hour ago. Our lawyers called JFSA instantaneously, and will find a solution,” he wrote.