Resentment and upgrade! Coin An Zhao Changpeng officially sued Sequoia Capital

Along with the platform coin BNB triumphantly, the every move of the currency security has received much attention from the outside world.

On May 20, CoinDesk learned from a document in the Hong Kong High Court that Champion CEO Zhao Changpeng had submitted an application to the court through his lawyer, suing Sequoia Capital for damage to his reputation and preventing the currency from raising funds at a high valuation. The court immediately assessed the loss and hoped that Sequoia Capital would compensate him.

After the dispute between the currency and the Sequoia Capital was publicized, the contradictions escalated again.

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The beginning and end of the dispute

In August 2017, Sequoia Capital began negotiations on the investment in the currency and signed the contract on September 1. According to the investment letter of intent, Sequoia Capital invested a total of about 60 million yuan in the A round of financing, accounting for 10.714% of the shares.

On December 14, 2017, the Qian'an team proposed to Sequoia Capital that the existing shareholders of Qian'an believe that the valuation given by Sequoia Capital is too low. At the same time, IDG Capital intends to inject $18 million into the currency through two rounds of financing, with a valuation of $400 million and $1 billion, up from more than 10 times the valuation of Sequoia.

On December 17, 2017, Sequoia Capital proposed a new proposal to the currency, but it was rejected by the currency. On December 19, Sequoia Capital sent a lawyer's letter to Coin, and Sequoia Capital believed that the currency violated the previous exclusive terms signed by both parties and requested that the currency stop communicating with other investment institutions before December 20. And continue to complete the round A financing with Sequoia according to the original terms, otherwise it will initiate legal proceedings against the currency.

Soon after, Sequoia applied to the Hong Kong court for an injunction to prohibit the currency from negotiating with other investors, and the ban was also approved by the court. The court found that the negotiations with IDG were about a round of round financing, and there was no competition with the A round of financing. In the end, the ban was rejected by the court.

"just"

 

One is the leading enterprise in the field of cryptocurrency, and the other is the venture capital giant. The “playing code” between the two sides is particularly eye-catching.

Previously, Sequoia Capital and other startups were also pushed to the forefront due to “exclusive clauses”, but most companies chose to swallow their voices and no longer. In the emerging field of cryptocurrency, when Sequoia Capital wants to repeat itself, the currency security does not eat this set.

"The existence of this industry is because it has subverted the traditional financing model. Some people are used to it, and they don't know if they can stand." He Yi, co-founder of the coin security company, responded strongly.

In the face of this seemingly endless dispute, Zhao Changpeng chose to fight back. On May 7, 2018, Zhao Changpeng said on Twitter that all future projects in the currency of the currency need to be disclosed, whether it is directly or indirectly related to Sequoia Capital. For a time, the projects related to Sequoia Capital on the Gansu platform fell sharply.

In this indictment, Zhao Changpeng said in the document that "the injunction has caused me losses, and I am entitled to reasonable compensation from Sequoia Capital. First, I lost more and more estimates through successive rounds of financing. The opportunity to raise funds; secondly, damage my reputation.) In addition, in response to this matter, Zhao Changpeng said on Twitter today: "I will soon write a more personal point of view."

It is worth mentioning that according to the official website of the court, on June 25, Zhao Changpeng will hold a hearing with Sequoia Capital in the court (case number HCMP 2770/2017).

At that time, the end of the money security and Sequoia capital grievances, is it a loss or a handshake?

Author: Nancy

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