Binance-Linked Entities Sue RedotPay Co-Founders for $472M
Binance-affiliated entities have filed a lawsuit in Hong Kong against RedotPay co-founders, seeking $472.8 million in damages. The dispute centers on allegations that hundreds of thousands of users and hundreds of millions of dollars in funds were diverted from Binance's card program to RedotPay.
The suit was brought by Nest Trading Ltd., DistributedTechnologies Ltd., and Chaintecs Consulting Singapore Pte. against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. The filing alleges that the co-founders violated the terms of an agreement signed last year, with the conduct described in the filing as part of a fraudulent scheme.
The core technical allegation is that RedotPay allowed users to top up their cards directly with Binance Pay funds without properly segregating that money, in violation of the agreed terms. This isn't the first clash between the two companies over this exact issue; their first agreement collapsed within six months over similar allegations.