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RedotPay vows to defend itself against Binance lawsuit in Hong Kong
Binance says the claims involve about 470,000 diverted users and nearly $473 million in losses, while RedotPay calls the allegations unfounded.
Binance has sued Hong Kong-based RedotPay and its founders, alleging RedotPay diverted about 470,000 Binance customers, resulting in nearly $473 million in losses for the exchange, according to CoinDesk. Binance’s filing also alleges RedotPay improperly used Binance Pay funds to top up its own prepaid cards in a way that violated contractual agreements, including card top-ups funded by Binance Pay funds without segregation. RedotPay rejected the allegations and said it is aware of the legal proceedings and will “vigorously” defend all claims, while the company said it rejects the accusations made against it and its co-founders. Binance affiliates have also filed a separate suit against RedotPay affiliates in Singapore, and a hearing is scheduled for Friday on the Singapore Courts hearing list. CoinDesk also notes that RedotPay is planning a U.S. IPO of more than $1 billion, and that Binance and RedotPay entered a commercial agreement in November 2023 that ended less than six months later, based on details cited in the filing.