Binance Sues RedotPay for $470M in Alleged Crypto User Poaching

Binance has filed a $470 million lawsuit against RedotPay in Hong Kong, alleging that the rival crypto card provider poached users from its platform.

The complaint claims that RedotPay systematically diverted Binance users to its own crypto-to-fiat spending service, causing significant damage to Binance's business.

RedotPay has vowed to defend itself 'vigorously' against the allegations, but a public legal battle with the world's largest crypto exchange carries risks for a smaller firm like RedotPay.

The lawsuit marks a shift in the crypto card market, where exchanges and fintechs have previously fought over distribution channels without taking their disputes to court.