Binance Sues RedotPay Over Alleged $473 Million User Diversion

Binance-linked companies have taken legal action against Hong Kong-based cryptocurrency payments company RedotPay, alleging that its co-founders diverted over 470,000 users from Binance Card in breach of their commercial agreement.

The plaintiffs, which include Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore, seek nearly $473 million in damages, citing a lifetime customer value of $925 per user.

Binance alleges that RedotPay allowed users to fund RedotPay stablecoin payment cards with Binance Pay outside the scope of the agreement, which it claims contributed to RedotPay's valuation as it considers a potential initial public offering.