Binance-affiliated entities Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore have filed a lawsuit against RedotPay in Hong Kong, accusing the crypto card company's co-founders of breaching a business agreement. The lawsuit alleges that RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao diverted more than 470,000 Binance users to their platform, causing $472.8 million in losses to Binance, according to Bloomberg. The legal action reflects intensifying competition in the crypto payments sector, where companies vie for users seeking to spend digital assets through card networks.
Binance Entities File Hong Kong Lawsuit Against RedotPay Co-founders
Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore filed the lawsuit in Hong Kong against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao, Bloomberg reported. The plaintiffs are entities connected to Binance, the world's largest crypto exchange by trading volume. RedotPay operates as the largest crypto card company, enabling users to spend digital assets through cards linked to Visa and Mastercard networks. The lawsuit alleges the three co-founders broke the terms of an existing agreement with the Binance-linked entities by diverting more than 470,000 Binance users toward RedotPay's services.
Lawsuit Claims $472.8 Million Loss from Alleged User Diversion
Binance is seeking $472.8 million in compensation for alleged damages tied to the user diversion scheme, according to the lawsuit filing. The figure represents Binance's estimate of losses attributed to the movement of more than 470,000 users to RedotPay instead of remaining within the Binance ecosystem. The exact methodology behind the calculation has not been detailed publicly. The scale of the alleged diversion involves hundreds of thousands of users in the competitive crypto card market, where companies compete for customers wanting to spend crypto holdings in everyday transactions.
RedotPay Denies Allegations and Plans Legal Defense
RedotPay has denied the allegations laid out in the Hong Kong lawsuit, according to Bloomberg's reporting. The company rejected accusations that its co-founders engineered a scheme to divert users from Binance in breach of any agreement. RedotPay stated it intends to respond through formal legal channels rather than settle or concede to the claims.
Parallel Singapore Lawsuit Hearing Scheduled for Friday
Chaintecs Consulting Singapore, one of the Binance-affiliated entities named in the Hong Kong filing, has filed a separate lawsuit against RedotPay affiliates in Singapore. A hearing in the Singapore case is scheduled for Friday, according to the report. The parallel legal action expands the dispute beyond a single courtroom, with Binance-linked entities pursuing RedotPay in two separate jurisdictions simultaneously.
FAQ
What entities filed the lawsuit against RedotPay?
Binance-affiliated entities Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore filed the lawsuit in Hong Kong against RedotPay co-founders.
How much in losses does Binance claim from the alleged user diversion?
Binance alleges it suffered $472.8 million in losses due to the diversion of more than 470,000 users to RedotPay, according to the lawsuit filing.
How has RedotPay responded to the allegations?
RedotPay denied the allegations and stated it plans to defend itself through formal legal channels, according to Bloomberg.
