Binance Sues RedotPay for $472.8 Million Over Alleged Fund Misuse

Binance and RedotPay were partners in a crypto payment card venture until it fell apart. Binance claims that over 470,000 users flowed from its own card to RedotPay's during their partnership, which it says boosted RedotPay's valuation.

Binance is suing RedotPay for $472.8 million, alleging the partner improperly used Binance funds to load prepaid cards and breached a contract. It also claims that RedotPay diverted over 470,000 users from Binance Card to its own card during their partnership.

The lawsuit accuses RedotPay of breaching an agreement signed by both parties last year, which included guarantees that Binance funds would be kept separate from other funds. Binance is now accusing RedotPay of characterizing this as a 'fraudulent scheme' and a 'breach of contract.'

The timing of the lawsuit is particularly significant for RedotPay, which is planning to go public in the US with a valuation target of $4 billion.