Binance Sues RedotPay for Alleged Customer Diversion

Binance, one of the world's leading cryptocurrency exchanges, has filed a lawsuit against Hong Kong-based crypto payments company RedotPay and its founders. The complaint alleges that RedotPay used Binance customers and funds in ways that violated their agreement and diverted customers to its competing product.

The lawsuit claims that RedotPay allowed Binance Pay funds to be used for prohibited activities, including topping up its stablecoin payment cards without proper segregation. This allegedly resulted in over 470,000 Binance customers being diverted to RedotPay's product.

Binance is seeking over ₹4,000 crore (around $472 million) in damages, citing the lifetime value of each affected customer at around ₹78,000 ($925). The company alleges that RedotPay's actions contributed to its rising valuation and helped it receive approximately ₹2,550 crore ($304 million) in user funds from Binance Pay.