Binance Sues RedotPay Over Alleged $473M User Diversion
Binance-linked companies have taken legal action against RedotPay, accusing the Hong Kong-based cryptocurrency payments firm of diverting more than 470,000 users from Binance Card in breach of a commercial agreement.
The plaintiffs, which include Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore, are seeking nearly $473 million in damages. According to a Hong Kong court filing obtained by Bloomberg, the lawsuit alleges that RedotPay allowed users to fund its stablecoin payment cards with Binance Pay outside the scope of the agreement.
The plaintiffs estimate damages at $472.8 million based on a lifetime customer value of $925 per user. A related lawsuit has also been filed in Singapore, where a hearing is scheduled for Friday.