Binance Sues RedotPay for $472.8 Million Over Alleged Misuse of Client Funds

Binance has taken its former partner RedotPay to court over allegations of misusing client funds, claiming $472.8 million in damages.

The lawsuit, filed on August 5, accuses RedotPay's three co-founders of breaching an agreement signed by both parties last year. According to Binance, RedotPay diverted over 470,000 users from Binance Card to its own crypto payment card during their partnership, resulting in a lifetime value (LTV) loss of $925 per user.

The LTV calculation assigns a value of $925 to each diverted user and multiplies it by the number of diverted users to arrive at the total loss. This figure is based on traditional finance and internet companies' metric for customer lifetime value.