Binance Sues RedotPay Founders Over Alleged User Poaching
Binance-affiliated companies have filed a lawsuit against the founders of Hong Kong-based cryptocurrency payments firm RedotPay, alleging they diverted hundreds of thousands of users from Binance Card in breach of a commercial agreement.
The plaintiffs are seeking nearly $473 million in damages from RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. The case was brought by Binance Holdings affiliates Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore, according to a Hong Kong court filing.
The dispute centers on an arrangement involving Binance Pay and RedotPay’s stablecoin payment cards. Binance claims that RedotPay allowed customers to fund its cards through Binance Pay in ways that fell outside the agreed commercial scope, redirecting more than 470,000 users away from Binance Card.
Binance calculated damages of $472.8 million using an estimated lifetime customer value of $925 per user.