Binance Affiliates Sue RedotPay Over User Diversion Claims

Binance-affiliated firms have sued the founders of Hong Kong-based cryptocurrency funds firm RedotPay, alleging it diverted greater than 470,000 customers from Binance Card in breach of their business settlement.

The plaintiffs search practically $473 million in damages, alleging the conduct contributed to RedotPay’s valuation as the corporate considers a possible preliminary public providing, Bloomberg reported Wednesday, citing a Hong Kong courtroom submitting it obtained.

RedotPay mentioned it’s defending the proceedings and rejected what it described as “unfounded allegations” in opposition to the corporate and its co-founders. “RedotPay is strenuously defending the proceedings,” a RedotPay spokesperson informed Cointelegraph, including that it’s going to reply by way of the suitable authorized course of.

The authorized dispute comes as crypto funds firms compete to broaden stablecoin-based spending merchandise, with RedotPay reporting speedy progress and a worldwide consumer base of greater than 8 million clients.

Binance alleges RedotPay breached an settlement

Based on the report, Binance alleged that RedotPay diverted greater than 470,000 customers from Binance Card by permitting customers to fund RedotPay stablecoin cost playing cards with Binance Pay exterior the agreed phrases.

Binance Holdings associates Nest Buying and selling, DistributedTechnologies and Chaintecs Consulting Singapore filed a petition in opposition to RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao. Chaintecs filed a associated lawsuit in Singapore, the place a listening to is scheduled for Friday.

The plaintiffs estimated damages at $472.8 million, citing a lifetime buyer worth of $925 for every allegedly diverted consumer.

A Binance spokesperson informed Cointelegraph: “Whereas Binance doesn’t touch upon ongoing litigation, the place needed we’ll use courts and different boards to pursue what is correct.”

RedotPay says proceedings is not going to have an effect on operations

RedotPay mentioned the proceedings is not going to have an effect on its day-to-day operations and that it’s going to proceed defending itself by way of the authorized course of.

“We’re assured in our authorized place, and are vigorously defending all claims. Because the matter is at present earlier than the courtroom, RedotPay is not going to be commenting additional on the allegations, the continued proceedings, or issues that will probably be addressed by way of the judicial course of,” the corporate said in a press release on its web site.

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The corporate additionally highlighted its current progress, saying its consumer base elevated by greater than 33% over the previous six months. RedotPay mentioned it generates about $180 million in annualized income and $14 billion in annualized cost quantity.

RedotPay announced its Binance Pay partnership in December 2023, saying the combination allowed Binance Pay customers to make direct deposits to RedotPay playing cards. The hyperlinks included in its announcement on X level to unavailable pages.

Supply: RedotPay

Binance later introduced that it might finish assist for Binance Pay options on the RedotPay platform efficient April 3, 2026, as a part of a evaluation of its service provider companions. The web page not masses, though it remains searchable on Binance’s web site.

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