Binance Sues RedotPay for $473 Million Over Card Deposits

Binance has filed a lawsuit in Hong Kong seeking $472.8 million from the founders of the crypto card company RedotPay. The legal claim argues that RedotPay allowed its users to top up their cards directly from Binance accounts, a practice that Binance states was explicitly forbidden. Documents indicate that RedotPay used this unauthorized connection to pitch investors, citing the integration as a way to speed up user adoption.

While RedotPay secured millions in funding from major firms like Lightspeed and Goodwater Capital, Binance claims a significant portion of that growth was built on its own platform. The lawsuit alleges that over 470,000 users were effectively diverted from Binance. Binance has since terminated the connection, but the dispute highlights ongoing concerns about how RedotPay tracks its user base and revenue figures.

The timing of this legal battle creates uncertainty for RedotPay, which is currently eyeing a major listing in the United States. Big names like JPMorgan and Goldman Sachs are reportedly involved in the potential IPO. These banks now face questions regarding the accuracy of RedotPay internal growth metrics as the court proceedings move forward.

RedotPay has stated that the lawsuit will not affect its daily business operations and maintains that it has a strong legal defense. As the case moves through the courts in Hong Kong and Singapore, the industry is watching to see how the outcome might influence the future of crypto payment partnerships and the scrutiny placed on similar card providers.