Binance Affiliates Sue RedotPay Founders for Nearly $473 Million

A $473 million lawsuit has put RedotPay under pressure as Binance affiliates alleged that the firm breached a commercial agreement. RedotPay is facing a lawsuit seeking around $473 million in damages from Binance-affiliated companies. The case centers on allegations that the Hong Kong-based stablecoin payments firm diverted more than 470,000 users from Binance Card by allowing them to fund the firm’s payment cards through Binance Pay outside the terms of an existing commercial agreement. Bloomberg reported the lawsuit on Wednesday and cited a Hong Kong court filing which revealed the exchange’s affiliates Nest Trading, Distributed Technologies Ltd., and Chaintecs Consulting Singapore brought the case against RedotPay’s co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. Agreement Breach The plaintiffs calculated the claimed damages using a lifetime customer value of $925 for each allegedly diverted user. Chaintecs has also brought a related case in Singapore, the hearing of which is scheduled for Friday. The dispute comes months after Binance’s decision to end its support for the company. In an update, the exchange previously said that Binance Pay features and functionality on t...