Hong Kong-based RedotPay rejects Binance allegations of diverting 470,000 customers and causing $473 million in losses.
RedotPay has pledged to vigorously defend itself against a $473 million lawsuit filed by Binance, which alleges the firm poached nearly 470,000 customers. The lawsuit, filed in Hong Kong, claims RedotPay improperly used Binance Pay funds to top up its own prepaid cards, violating contractual agreements.
Binance asserts the alleged scheme resulted in losses totaling $473 million. RedotPay, which positions itself as the world’s largest stablecoin payment card issuer and is planning a $1 billion U.S. IPO, dismissed the claims as unfounded. The firm stated it will contest all allegations in the legal proceedings.
The dispute centers on accusations that RedotPay diverted users from Binance’s platform, though no immediate market reaction was reported. The case highlights growing tensions in the competitive crypto payments sector.