Binance Sues RedotPay Over Alleged User Diversion and $472.8M Loss

Binance has filed a lawsuit against RedotPay, alleging that the company diverted over 470,000 users in breach of their commercial agreement. According to Bloomberg, this resulted in Binance incurring alleged losses of $472.8 million.

The dispute centers around the partnership between Binance and RedotPay, which allowed Binance users to access selected RedotPay services while requiring payment flows to remain operationally separate. However, Binance alleges that these safeguards broke down after Binance Pay funds were used to top up RedotPay Cards.

The lawsuit has sparked broader questions about who owns customers in cryptocurrency payments and how the competitive market operates. RedotPay has rejected the allegations, stating it will defend itself through the appropriate legal process.