Binance Affiliates Sue Redot
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Affiliates of Binance have sued the founders of RedotPay, a Hong Kong-based cryptocurrency payments company, alleging that RedotPay diverted over 470,000 users from Binance Card in violation of their commercial agreement. Binance-affiliated companies seek approximately $473 million in damages, claiming this action contributed to RedotPay’s valuation as it considers an initial public offering. RedotPay is defending itself, rejecting the allegations and asserting it will respond through legal channels.
Why it matters
The lawsuit highlights competition and disputes within the crypto payments sector, particularly regarding user acquisition and partnerships involving stablecoin-based payment products. Binance’s move to legally challenge RedotPay underscores potential friction points in commercial agreements between major crypto service providers and emerging payment platforms.
Key context
Binance alleges that RedotPay violated terms by allowing funding of RedotPay stablecoin payment cards with Binance Pay outside their agreement, diverting users away from Binance Card. RedotPay had partnered with Binance Pay in December 2023 to enable direct deposits to its cards. Binance plans to end Binance Pay support on RedotPay by April 2026 following a merchant partner review. The legal action involves Binance affiliates Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore, with related lawsuits filed in Hong Kong and Singapore.
Key numbers and entities
The lawsuit names Binance affiliates Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore as plaintiffs and RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao as defendants. The alleged user diversion involves more than 470,000 users. Binance seeks $472.8 million in damages, based on a claimed $925 lifetime customer value per diverted user. RedotPay reports a user base exceeding 8 million, with over 33% growth in six months, generating about $180 million in annualized revenue and $14 billion in annualized payment volume.
What remains unclear
The source does not flag open questions but notes that the legal proceedings are ongoing and being addressed through the judicial process. Details on the specific contractual terms breached and the exact nature of user diversion remain limited in the available information.