Binance-affiliated companies have sued the founders of Hong Kong-based cryptocurrency payments company RedotPay, alleging they diverted more than 470,000 users from Binance Card in breach of their commercial agreement.
The plaintiffs seek nearly $473 million in damages, alleging the conduct contributed to RedotPay’s valuation as it considers a potential initial public offering, Bloomberg reported Wednesday, citing a Hong Kong court filing it obtained.
According to the report, Binance Holdings affiliates Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore filed the petition against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao.
Binance alleges RedotPay allowed users to fund RedotPay stablecoin payment cards with Binance Pay outside the scope of the agreement. The lawsuit claims RedotPay diverted more than 470,000 users, with Binance estimating damages at $472.8 million based on a lifetime customer value of $925 per user. Chaintecs also filed a related lawsuit in Singapore, where a hearing is scheduled for Friday.
In a subsequent statement published on its website, RedotPay said the legal proceedings will not affect its operations and that it will contest the claims.
“We are confident in our legal position, and are vigorously defending all claims. As the matter is currently before the court, RedotPay will not be commenting further on the allegations, the ongoing proceedings, or matters that will be addressed through the judicial process,” the company said.
A Binance spokesperson told Cointelegraph: “While Binance does not comment on ongoing litigation, where necessary we will use courts and other forums to pursue what is right.”
Related: Apple faces lawsuit over alleged $1.8M Bitcoin wallet app losses