Binance Sues RedotPay Over Alleged Diversion of 470,000 Users

Binance has launched a major lawsuit against RedotPay, accusing the company of violating their commercial agreement and diverting hundreds of thousands of Binance Card users. The exchange's affiliated companies seek $472.8 million in damages, arguing that the alleged customer migration significantly reduced the long-term value of its Binance Card business.

The lawsuit was filed by Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore against RedotPay founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao in Hong Kong. The companies claim that RedotPay diverted over 470,000 users through Binance Pay outside of agreed commercial terms.

Binance calculated damages using an estimated lifetime customer value of $925 per user. In addition to the Hong Kong case, Chaintecs also filed related legal proceedings in Singapore, where a hearing will take place on Friday.