Still Reeling From $54 Million Bitcoin Hack, Binance Sues Sequoia Capital

Samantha Chang
Binance CEO Changpeng Zhao, who is still reeling after a $54 million bitcoin hack, is suing Sequoia Capital China, claiming it damaged his reputation. | Source: (i) Shutterstock (ii) Shutterstock; Edited by CCN

By CCN: Binance CEO Changpeng Zhao — who is still reeling after a $54 million bitcoin hack — is suing Sequoia Capital China, a unit of California-based venture capital firm Sequoia Capital.

In his May 20 legal filing with the High Court in Hong Kong, Zhao claims Sequoia Capital China prevented him from raising capital between Dec. 27, 2017 and March 1, 2018 at the height of the bitcoin bull market.

Moreover, Zhao claims Sequoia damaged his reputation.

Zhao Seeks an Accounting of Damages

Zhao did not respond to repeated requests for comment from CCN about his claims. However, in his filing, which was leaked to CoinDesk, Zhao claimed:

“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.”

Zhao is seeking an unspecified amount in damages, mainly because he’s uncertain what damages he allegedly incurred.

binance bitcoin hack may 2019

Binance lost 7,074 bitcoin in a hack on May 7, 2019. | Source: Blockchain.com

Read the full story on CCN.com.