Cryptocurrency news

Chinese investor plans to sue Binance exchange

Chinese investor plans to sue Binance exchange

Weixin Chen, an early investor in the Binance cryptocurrency exchange, is planning to sue The company over an undervalued valuation of its shares.

Back in October 2017, Weixing Chen and a group of other investors bought a 5% stake in the cryptocurrency exchange. At that time, the exchange’s capitalization was estimated at $70 million according to its owners ‘ own calculations. After that, the exchange quickly gained popularity and now the daily volume of transactions with cryptocurrencies on Binance is billions of dollars.

“Weixin Chen invested several million three years ago, but Binance has not issued a confirmation of the purchase and does not allow him to dispose of shares. It offers to buy back shares at a very low price, ” writes journalist Colin Wu.

At the moment, analysts estimate Binance at $10 billion. However, the cryptocurrency exchange does not recognize this assessment and offers to buy back Chen’s shares, based on a capitalization of $600 million.

According to Colin Wu, many investors have complaints about the site, and they mainly relate to “blind” investment in July 2017. However, it will be difficult for the plaintiffs to get justice, since Binance includes many legal entities. Most early investors agree to the exchange’s terms.

“Investors in Binance tokens and shareholders of The company received high returns on their investments,” commented an official representative of the exchange.

Meanwhile, Binance continues to expand its sphere of influence in the industry. On September 1, the exchange launched
the main Binance Smart Chain network with the ability to stake BNB and develop decentralized Finance (DeFi) applications.