Binance Bites Back: $473M Suit Says RedotPay Poached 470K Cardholders 💳⚔️

Binance-affiliated entities have filed suit in Hong Kong against the founders of crypto payments company RedotPay, alleging the firm diverted more than 470,000 users from Binance Card in violation of their commercial agreement and seeking nearly $473 million in damages.

The petition was brought by Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore, all affiliates of Binance Holdings, against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao, according to a Hong Kong court filing reviewed by Bloomberg. Binance alleges RedotPay permitted users to fund its stablecoin payment cards through Binance Pay beyond the scope of their agreement, with the plaintiffs estimating damages at $472.8 million based on a lifetime customer value of $925 per diverted user. The lawsuit further claims the conduct boosted RedotPay's valuation as it weighs a potential initial public offering.

A related lawsuit has been filed by Chaintecs in Singapore, where a hearing is scheduled for Friday.

In a statement on its website, RedotPay said the proceedings will not affect its operations and that it intends to contest the claims. "We are confident in our legal position, and are vigorously defending all claims. As the matter is currently before the court, RedotPay will not be commenting further on the allegations, the ongoing proceedings, or matters that will be addressed through the judicial process," the company said.

A Binance spokesperson told Cointelegraph: "While Binance does not comment on ongoing litigation, where necessary we will use courts and other forums to pursue what is right."