Binance-affiliated companies have sued the founders of Hong Kong-based cryptocurrency payments company RedotPay, alleging they diverted more than 470,000 users from Binance Card in breach of their commercial agreement.
The plaintiffs seek nearly $473 million in damages, alleging the conduct contributed to RedotPay’s valuation as it considers a potential initial public offering, Bloomberg reported Wednesday, citing a Hong Kong court filing it obtained.
According to the report, Binance Holdings affiliates Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore filed the petition against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao.
Binance alleges RedotPay allowed users to fund RedotPay stablecoin payment cards with Binance Pay outside the scope of the agreement. The lawsuit claims RedotPay diverted more than 470,000 users, with Binance estimating damages at $472.8 million based on a lifetime customer…
