Key facts
- Binance-affiliated companies have sued RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao.
- The lawsuit alleges RedotPay diverted more than 470,000 users from Binance Card.
- Plaintiffs are seeking damages estimated at $472.8 million.
- RedotPay allegedly allowed users to fund its stablecoin payment cards with Binance Pay outside their agreement.
- RedotPay stated it is confident in its legal position and will vigorously defend all claims.
Binance-affiliated companies have filed a lawsuit against the founders of Hong Kong-based cryptocurrency payments firm RedotPay, alleging that they diverted over 470,000 users from Binance Card in violation of a commercial agreement. The plaintiffs are seeking nearly $473 million in damages, claiming this action contributed to RedotPay's valuation as it considers a potential initial public offering.
According to a Hong Kong court filing, Binance Holdings affiliates Nest Trading, Distributed Technologies, and Chaintecs Consulting Singapore are suing RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. The lawsuit contends that RedotPay allowed users to fund its stablecoin payment cards using Binance Pay, which was outside the scope of their agreement. Binance estimates the damages at $472.8 million, based on a lifetime customer value of $925 per user.
Chaintecs has also initiated a related lawsuit in Singapore, with a hearing scheduled for Friday. In response, RedotPay issued a statement asserting that the legal proceedings will not impact its operations and that the company will contest the claims. RedotPay stated it is confident in its legal position and will vigorously defend all allegations, declining further comment as the matter is before the court.
A Binance spokesperson commented that while the company does not discuss ongoing litigation, it will pursue legal avenues when necessary.