Crypto▼ Bearish
Binance Sues RedotPay for $473M Over Alleged User Diversion
Binance affiliates claim RedotPay diverted over 470,000 users from the Binance Card program, seeking $473M in damages. RedotPay says it will fight the allegations. A Singapore hearing is set for Friday.
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Binance Holdings and three of its affiliates have filed a lawsuit in Hong Kong accusing RedotPay, a Hong Kong-based payments firm, of diverting hundreds of thousands of users from the Binance Card program. The petition, filed by Nest Trading, Distributed Technologies and Chaintecs Consulting Singapore, seeks damages of $472.8 million.
According to the court filing, RedotPay allowed customers to fund its stablecoin payment cards using Binance Pay outside the agreed commercial framework. The plaintiffs estimate that this practice steered more than 470,000 users away from Binance’s own card offering. The $472.8 million figure is based on a lifetime customer value of $925 per user, the filing said.
The dispute now spans at least two jurisdictions. In addition to the Hong Kong petition, Chaintecs has initiated a separate lawsuit in Singapore. A hearing in that case is scheduled for Friday, according to the filing.
RedotPay responded on its website, saying the legal proceedings will not disrupt its operations. The company said it intends to contest all allegations and expressed confidence in its legal position. It added that it will not comment further while the matter is before the courts.
The filing also suggests that the alleged diversion contributed to RedotPay’s valuation as the company explores a potential initial public offering. That detail was included in the court document, though no specific valuation figure was disclosed.