Binance Sues RedotPay Founders Over Alleged $470 Million Breach
Binance has filed a lawsuit against three founders of crypto payments company RedotPay, seeking approximately $472.8 million in damages over an alleged breach of contract and user diversion.
The dispute centers on an agreement signed in March 2025, which allowed RedotPay to access Binance users while Binance aimed to expand its payment services through RedotPay's network.
Binance claims that RedotPay allowed Binance Pay funds to load RedotPay prepaid cards without separation, resulting in more than 470,000 users moving from Binance card services to RedotPay cards. Each user was valued at $925 in expected lifetime revenue by Binance, leading to total losses of $472.8 million.
RedotPay rejected the claims and stated that the lawsuit would not disrupt its daily operations, as it prepares for a possible US initial public offering (IPO) with plans to raise more than $1 billion at a valuation above $4 billion.