California-based venture capital company Sequoia Capital filed a lawsuit to the court of Hong Kong against the cryptocurrency exchange Binance and its CEO Zhao Changpeng, accusing him of disrupting the deal to buy a stake in Binance.

In August 2017,  Sequoia Capital started negotiating with the founders of Hong Kong-based crypto-exchange Binance to purchase a 11% stake in it for $80 million. But in December negotiations broke down, as Zhao Changpeng, Binance CEO, claimed that other Binance shareholders oppose the deal, saying that the price of the 11% stake in Binance had grown significantly since August, Bloomberg reports.

At the same time, Zhao started negotiations with another potential investor, IDG Capital, discussing two rounds of funding into Binance at vastly higher valuations: $400 million and $1 billion, respectively.

Now Sequoia Capital accuses Zhao of violating exclusivity agreements. Sequoia and Zhao are planning to settle their dispute in arbitration. But after Sequoia turned to Hong Kong’s High Court with lawsuit, it secured a temporary injunction barring Zhao from negotiating with other investors.

In less than a year of existence, Hong Kong-based crypto-exchange Binance managed to take a leading position in the market of cryptocurrency trading platforms. It various times amounted to the first place by daily trading volumes. The profit of Binance in the II quarter of fiscal 2017-2018 exceeded $200 million, and in the third quarter it earned $150 million.