Binance Sues RedotPay Over Alleged Redirect of 470k Users

Binance affiliates have filed a $472.8 million damages lawsuit against RedotPay co-founders, alleging they enabled users to top up RedotPay stablecoin payment cards using Binance Pay outside the scope of their contract.

The lawsuit was filed by Nest Trading, Distributed Technologies, and Chaintex Consulting Singapore, affiliates of Binance Holdings. The defendants are RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chaoda.

Binance claims that more than 470,000 Binance Card users left in the process, with each user valued at $925. The plaintiffs argue this conduct contributed to RedotPay's enterprise value and was linked to its review of the possibility of an initial public offering (IPO).