Binance has sued Hong Kong-based RedotPay and its founders, alleging the firm diverted about 470,000 Binance customers and caused nearly $473 million in losses to the exchange.
RedotPay, which calls itself the world’s largest stablecoin payment card issuer and is planning a U.S. IPO of more than $1 billion, has rejected the claims as unfounded and vowed to defend itself “vigorously.”
Binance alleged RedotPay improperly used Binance Pay funds to top up its own prepaid cards against contractual agreements.
RedotPay stated that it is aware of legal proceedings initiated by Binance and will vigorously defend all claims.
A Binance spokesperson noted that the company does not comment on ongoing litigation but will pursue its rights through courts and other forums as necessary.
