Binance Sues RedotPay Founders Over Alleged Diversion Scheme

Binance affiliates are suing the founders of RedotPay for allegedly diverting users to a competing product in a 'fraudulent scheme,' claiming nearly half a billion dollars in losses. The lawsuit, filed by Binance Holdings-affiliated entities Nest Trading Ltd., DistributedTechnologies Ltd. and Chaintecs Consulting Singapore Pte, alleges that RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao violated the terms of an agreement signed last year.

The alleged diversion led to significant losses for Binance affiliates, with the lawsuit claiming nearly half a billion dollars in damages. The exact figure is $470 million. The lawsuit states that RedotPay's actions were part of a 'fraudulent scheme,' but does not provide further details on what this scheme entails.

The lawsuit was filed in Hong Kong and names Gao Zhangpeng, Chan Wa Choi, and Yao Chao as defendants. It is unclear how the case will proceed or when it may reach a verdict.