Binance sues RedotPay over alleged $473 million user losses: Report
Binance-linked companies sued RedotPay, accusing it of diverting more than 470,000 Binance Card users under a commercial deal and seeking nearly $473 million in damages.
Binance-affiliated companies have filed a lawsuit against RedotPay, the Hong Kong-based cryptocurrency payment firm, alleging that the company diverted more than 470,000 users from Binance Card in violation of their commercial agreement. The plaintiffs are seeking nearly $473 million in damages, which they claim is attributable to the alleged conduct and will impact RedotPay's potential initial public offering.
RedotPay responded to the allegations, stating that they are defending the proceedings and reject the "unfounded allegations" made against them and their co-founders. The legal dispute has arisen as crypto payments firms vie to expand stablecoin-based payment products, with RedotPay reporting a rapid growth and a user base of over 8 million customers.
Binance alleged that RedotPay diverted users by allowing them to fund RedotPay stablecoin payment cards with Binance Pay outside the agreed terms. The plaintiffs estimated damages at $472.8 million based on a lifetime customer value of $925 for each allegedly diverted user.
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