Binance has sued RedotPay for $472.8 million in Hong Kong, claiming the crypto payments startup diverted over 470,000 card users in violation of their commercial deal. Three Binance-affiliated entities, Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore, filed the case against RedotPay's founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao, arguing the user migration gutted the long-term value of Binance Card.
The exchange calculated damages by applying an estimated lifetime customer value of $925 per redirected user. Binance claims RedotPay steered cardholders through Binance Pay outside agreed terms, undercutting the partnership's original scope. A related lawsuit filed by Chaintecs in Singapore is set for a hearing this Friday.
RedotPay, meanwhile, isn't backing down. The company denies the allegations and says the legal action won't derail operations or expansion. It has eight million users globally, $180 million in annualized revenue, and roughly $14 billion in annualized payment volume. Management is also exploring a potential US public listing.
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