Binance Affiliates Sue RedotPay Founders for $473 Million

Binance affiliates have filed a lawsuit against the co founders of payment firm RedotPay. The claim seeks nearly 473 million dollars in damages for an alleged breach of contract. According to the court filing, RedotPay reportedly diverted over 470,000 users from the Binance Card program by incorrectly using Binance Pay tools. This action allegedly went against the terms of their commercial partnership.

The plaintiffs, which include companies like Nest Trading and Chaintecs Consulting Singapore, arrived at this damage figure by estimating the lifetime value of each lost customer. The dispute comes after Binance ended its support for RedotPay earlier this year, citing a broader review of its merchant partners. A related hearing for this case is set to take place in Singapore this Friday.

Despite this legal hurdle, RedotPay has been pushing for rapid growth. The company is reportedly planning for a potential US public listing that could value the business at over 4 billion dollars. They recently reached 10 billion dollars in annualized payment volume and have gained backing from major industry players like Coinbase Ventures and Circle Ventures.

For Binance, the legal battle arrives while the exchange continues to grow its user base and traditional finance products. With over 300 million registered users, the exchange remains focused on expanding its global footprint. Traders should watch for the outcome of the Singapore hearing, as it could impact future partnership agreements across the payment sector.