Binance Sues RedotPay Founders, Seeks $470 Million Over Alleged User Diversion
Summary
- Binance affiliates filed a damages suit against RedotPay’s co-founders seeking about $470 million.
- Binance said RedotPay breached the agreement and steered Binance users to its own stablecoin payment card service, causing losses.
- Binance said in the complaint that more than 470,000 users moved to RedotPay cards, resulting in total losses of $472.8 million, while RedotPay said the lawsuit would not affect its operations.
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Binance, the world’s largest digital-asset exchange, has sued the founders of crypto payments company RedotPay.
Bloomberg reported on August 5 that Binance affiliates Nest Trading, Distributed Technologies and Chantex Consulting Singapore filed a damages suit in a Hong Kong court against RedotPay co-founders Gao Zhangfeng, Chan Wa Choi and Yao Chao. The claim seeks about $470 million.
Binance alleges RedotPay breached an agreement signed last year and fraudulently directed Binance users to its own stablecoin payment card service.
Under the deal, RedotPay would use Binance’s user base, while Binance would expand its payment service through the RedotPay network. Binance claims RedotPay failed to carry out those terms, allowing users to top up RedotPay cards through Binance Pay.
In the complaint, Binance said more than 470,000 users switched from Binance cards to RedotPay cards, resulting in losses of $472.8 million.
RedotPay rejected the allegations in a statement, saying it would actively contest all claims through legal proceedings and that the lawsuit would not affect its operations.
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