Binance sues RedotPay over alleged $473 million user losses: Report
Binance-affiliated companies have sued Hong Kong-based cryptocurrency payments company RedotPay, alleging it diverted more than 470,000 users from Binance Card in breach of their commercial agreement. The plaintiffs seek nearly $473 million in damages, arguing the alleged conduct helped fuel RedotPays growth as the company pursues a potential initial public offering (IPO), Bloomberg reported Wednesday, citing a Hong Kong court filing it obtained. RedotPay said it is defending the proceedings and rejected what it described as “unfounded allegations” against the company and its co-founders. “RedotPay is strenuously defending the proceedings,” a RedotPay spokesperson told Cointelegraph, adding that it will respond through the appropriate legal process. The legal dispute comes as crypto payments companies compete to expand stablecoin-based spending products, with RedotPay reporting rapid growth and a user base of more than 8 million customers globally. Binance alleges RedotPay violated an agreement According to the report, Binance alleged that RedotPay diverted more than 470,000 users from Binance Card in breach of a commercial agreement by allowing users to fund RedotPay stablecoin payment cards with Binance Pay outside the agreed terms. Binance Holdings-affiliated entities, including Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore reportedly filed a petition against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao. Chaintecs