coinedition.com
Binance has launched a major legal battle against crypto payments firm RedotPay, accusing the company of violating a commercial agreement and redirecting hundreds of thousands of users. The exchange’s affiliated companies seek $472.8 million in damages, arguing the alleged customer migration significantly reduced the long-term value of its Binance Card business. However, RedotPay disputes every allegation and insists the lawsuit will not interrupt its operations or expansion plans.
Binance Claims Agreement Breach
According to Bloomberg, Binance affiliates Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore filed the Hong Kong lawsuit against RedotPay founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao.
The companies claim RedotPay diverted more than 470,000 Binance Card users through Binance Pay outside agreed commercial terms. Consequently, Binance calculated damages using an estimated lifetime customer value of $925 per user. Besides the Hong Kong case, Chaintecs also filed related legal proceedings in Singapore, where a hearing will take place on Friday.
RedotPay Defends Business Strategy
However, RedotPay rejected the accusations and confirmed it will contest the claims through the courts. Additionally, the company maintained that legal proceedings will not disrupt daily operations.
RedotPay also reported strong business growth, surpassing eight million users worldwide. Moreover, the firm disclosed $180 million in annualized revenue and approximately $14 billion in annualized payment volume while continuing to evaluate a potential U.S. public listing.