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Binance-linked firms sue RedotPay for alleged $473 million user losses
The suit says RedotPay enabled Binance Pay card funding outside their agreement and involved more than 470,000 Binance Card users.
Binance-linked companies have sued RedotPay, alleging it diverted more than 470,000 Binance Card users in breach of a commercial agreement and seeking nearly $473 million in damages, according to a Bloomberg account cited by Cointelegraph.
The plaintiffs, including affiliates Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore, filed the petition against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao, and they tied the claimed damages to an estimated lifetime customer value of $925 per user.
The complaint alleges RedotPay allowed users to fund RedotPay stablecoin payment cards with Binance Pay outside the scope of the agreement.
RedotPay said in a statement that the legal proceedings will not affect its operations and that it will contest the claims, while Chaintecs has also filed a related case in Singapore with a hearing scheduled for Friday.