Binance Sues RedotPay Over Alleged User Diversion Worth $473M

Binance Holdings and its affiliates have filed a lawsuit against RedotPay, a Hong Kong-based cryptocurrency payments firm, alleging that it diverted over 470,000 users away from Binance Card through unauthorized activities.

The plaintiffs claim that RedotPay enabled users to load their stablecoin payment cards using Binance Pay outside the scope of their commercial agreement. They are seeking nearly $473 million in damages, which is based on the estimated lifetime customer value of $925 per user multiplied by the alleged user diversion figure.

The case, filed in Hong Kong court, centers on an alleged breach of a commercial agreement governing RedotPay's relationship with Binance Card. The plaintiffs argue that this conduct resulted in substantial customer movement away from Binance Card and toward RedotPay's own offering.