Binance has launched legal action in Hong Kong against the founders of RedotPay, alleging the crypto payments firm defrauded its platform by redirecting more than 470,000 users under an unauthorized arrangement. Three Binance-affiliated entities—Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore—filed the petition, according to a Bloomberg report citing a court filing.
The suit claims RedotPay allowed users to fund its stablecoin payment cards via Binance Pay, outside the bounds of their commercial agreement. Binance estimates the breach cost it $472.8 million in damages, using a calculation of $925 per user in projected lifetime value. The firm also separately filed a Singapore lawsuit where a hearing is set for Friday.
RedotPay defends its legal stance
RedotPay has stated that the legal action will not disrupt its operations and that it plans to fight all allegations. The company declined further comment while the case remains in court. In a statement, RedotPay said, “We are confident in our legal position, and are vigorously defending all claims.”
A Binance spokesperson told Cointelegraph, “While Binance does not comment on ongoing litigation, where necessary we will use courts and other forums to pursue what is right.”