Weixing Chen, one of the first investors in Binance, is about to file a lawsuit against the cryptocurrency exchange for allegedly underestimating the value of his shares. This is reported by the Chinese journalist Colin Wu.
Weixing Chen claims to have bought about 5% of Binance in October 2017. At that time, the site had been operating for several months and estimated itself at $70 million.Chen, together with a group of other investors, invested more than $3,5 million in Binance.
According to Wu, in 2020, Binance’s valuation approached $10 billion. But the exchange refused to buy back shares based on that market value. The investor was offered to sell the paper by installments, valuing the company at $ 600 million. This prompted him to go to court.