Crypto▼ Bearish
Binance Sues RedotPay for $473M Over Alleged User Diversion
Binance affiliates seek $473M from RedotPay, alleging 470,000 users diverted. RedotPay denies while it weighs $1B+ IPO, discloses $180M revenue.
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Binance affiliates have sued RedotPay and its co-founders for nearly $473 million, alleging the company diverted more than 470,000 Binance Card users to its own stablecoin payment service.
Bloomberg reported the Hong Kong court filing on Wednesday, citing documents it obtained. The plaintiffs include Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore. They accuse RedotPay of violating a commercial agreement that governed how the two companies worked together. RedotPay allowed users to fund its stablecoin payment cards through Binance Pay outside the agreed terms, the filing alleged.
RedotPay rejected the allegations. In a statement on its website, the company said it is vigorously defending the claims and that the litigation will not affect its day-to-day operations. "We are confident in our legal position, and are vigorously defending all claims," the company said.
The company also disclosed updated operating figures. Its user base has grown more than 33% over six months to exceed 8 million customers globally. RedotPay generates about $180 million in annualized revenue and processes roughly $14 billion in annualized payment volume.
The plaintiffs estimated damages using a lifetime customer value of $925 for each allegedly diverted customer, bringing the total claim to nearly $473 million, Bloomberg reported.