Binance Sues RedotPay Over Alleged User Diversion

Binance has filed a lawsuit against RedotPay's co-founders in Hong Kong court, alleging that they diverted users from Binance Card to RedotPay's platform. The plaintiffs claim over 470,000 users made the switch, resulting in approximately $304 million flowing through Pay into RedotPay's system.

The lawsuit centers on a commercial agreement between Binance-affiliated entities and RedotPay. According to the filing, RedotPay allowed users to fund their cards through Binance Pay in a way that fell outside the original partnership terms.

Binance is seeking $472.8 million in damages, which was calculated using an estimated $925 lifetime value per user. This isn't the first time friction has come up between the two companies; an earlier 2023 partnership fell apart within months over similar concerns.