Binance says RedotPay diverted users in $605 million lawsuit
RedotPay rejected the allegations, saying the company would “respond through the appropriate legal process”.
Binance-affiliated entities have filed a lawsuit against the founders of Hong Kong-based crypto payments firm RedotPay, accusing them of diverting users in a "fraudulent scheme" and causing nearly $500 million in losses. The alleged scheme involved allowing Binance Pay funds to be used for RedotPay Card top-ups, which was not permitted under the original agreement.
The lawsuit comes as RedotPay considers an initial public offering at a potential US$4 billion valuation. Binance claims that the channelling of over 470,000 customers away from Binance Card to RedotPay contributed to the company's reduced valuation. RedotPay denies the allegations and will defend itself in court. The lawsuit has not impacted RedotPay's day-to-day operations, and the company reported record on-chain spending from users in the past month.
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