Binance Affiliates Sue RedotPay for Nearly $473 Million Over Alleged Commercial Agreement Breach
A lawsuit filed by Binance-affiliated companies against RedotPay co-founders has put the Hong Kong-based stablecoin payments firm under intense pressure.
The case centers on allegations that RedotPay diverted over 470,000 users from Binance Card by allowing them to fund the company's payment cards through Binance Pay outside of an existing commercial agreement.
The plaintiffs claim damages of nearly $473 million, using a lifetime customer value of $925 for each allegedly diverted user. Chaintecs has also filed a related case in Singapore, with a hearing scheduled for Friday.
RedotPay had been expanding its presence in crypto payments and preparing for a possible public listing, with JPMorgan Chase, Goldman Sachs, and Jefferies Financial Group advising on the potential New York listing. The firm had raised $194 million in two funding rounds last year, with Coinbase Ventures, Circle Ventures, and Blockchain Capital among the investors.
In related news, Binance has been expanding its reach across the broader financial market, with a registered user base of 323 million across over 100 countries and institutional users surging by 9% in the first half of this year.