Binance Sues RedotPay for Alleged User Diversion, Seeks $473M

Binance-affiliated companies have taken legal action against RedotPay and its co-founders in Hong Kong. The exchange is seeking nearly $473 million in damages, accusing RedotPay of breaching a partnership agreement.

According to Binance, the initial collaboration was meant to be mutually beneficial: RedotPay would gain access to users of the world's largest crypto exchange, while Binance would expand its payment services network.

However, the plaintiff alleges that RedotPay allowed users to top up their cards via Binance Pay in circumvention of the agreement. The company claims that this resulted in over 470,000 users being diverted from the Binance Card service, and is seeking damages based on a valuation of $925 per customer.

RedotPay has rejected the allegations, stating that it will defend its position in court.