Companies tied to Binance have filed a lawsuit against RedotPay, accusing the crypto payments firm of improperly diverting more than 470,000 Binance Card users. The suit, which seeks nearly $473 million in damages, alleges that RedotPay exploited a commercial partnership to poach customers.
What the lawsuit alleges
The complaint, filed in a U.S. court, claims that RedotPay used access granted under a business agreement to redirect Binance Card holders to its own platform. Binance Card, a Visa debit card linked to crypto balances, was launched in 2020 and had attracted a large user base. The plaintiffs say RedotPay's actions caused significant financial harm and loss of customer relationships.
The $473 million figure is based on the estimated value of the diverted users and associated revenue. The lawsuit does not name specific individuals at either company but describes the scheme as a coordinated breach of trust.
RedotPay's response
RedotPay has not yet filed a formal response in court. The company, which offers crypto payment services, has not publicly commented on the allegations. The case is expected to draw attention to the competitive dynamics in the crypto card market, where partnerships often involve sensitive user data.
What's at stake for Binance
Binance has been expanding its card services globally, and the alleged diversion could disrupt its user base. The lawsuit seeks not only damages but also an injunction to prevent further diversion. Legal experts following the case note that the outcome could set a precedent for how crypto companies handle user data in commercial agreements.
The case is in its early stages. A court date has not yet been set.
