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3 clusters · 21 sources · 10 days · First seen · Last updated

Binance and RedotPay legal dispute

Overview

Binance-affiliated entities initiated legal action against the crypto-payments firm RedotPay and its co-founders in Hong Kong, seeking approximately $473 million in damages. The lawsuit alleges that RedotPay breached a commercial agreement by diverting over 470,000 Binance Card users and allowing Binance Pay funds to be used for RedotPay prepaid card top-ups, resulting in an estimated loss of $304 million. The plaintiffs further allege that RedotPay’s founders used confidential information from previous roles at Binance to build a competing business.

RedotPay has denied the allegations, stating it will vigorously defend the case. While the company previously asserted that litigation would not impact its preparations for a potential U.S. initial public offering (IPO), it has now delayed that IPO until 2027 or later. The postponement is attributed to ongoing regulatory reviews and the $473 million lawsuit. RedotPay had previously sought a valuation exceeding $4 billion and aimed to raise more than $1 billion, with major financial institutions including JPMorgan Chase, Goldman Sachs, and Jefferies Financial Group advising on the listing.

The dispute has expanded to include legal proceedings in Singapore involving Chaintecs Consulting Singapore. Following an August 7 hearing, conflicting reports emerged regarding the status of the Singapore matter; RedotPay stated it expects Binance to discontinue the proceedings and noted it will seek legal costs arising from any such discontinuance. Binance has denied these reports, stating it has no plans to abandon its claims and has informed both the court and RedotPay of its position.

Entities

RedotPay · Binance · Goldman Sachs · Jefferies Financial Group · Chaintecs Consulting Singapore

Timeline

  1. 29 days ago

    [BUSINESS] 5 sources
    RedotPay delays U.S. IPO to 2027 amid $473M Binance lawsuit

    RedotPay has postponed its planned $1 billion U.S. IPO until 2027 or later due to regulatory hurdles and a $473 million lawsuit from Binance-linked entities.

  2. about 1 month ago

    [BUSINESS] 4 sources
    Binance denies plans to drop RedotPay legal case in Singapore

    Binance and RedotPay disagree over whether Singapore legal proceedings are being discontinued amid a broader $473 million dispute involving claims of diverted customers.

  3. about 1 month ago

    [BUSINESS] 15 sources
    Binance sues RedotPay over $470M user‑diversion claim

    Binance sued RedotPay and its founders in Hong Kong, seeking ~$473 M over alleged diversion of 470,000+ users and misuse of Binance Pay funds; RedotPay denies the claims and plans to contest the case while eye‑

Sources

ambcrypto.com · birdwatchers.com · bitcoinethereumnews.com · blockchainreporter.net · blockonomi.com · blocktempo.com · calaboucodamorticiablog.wordpress.com · coinedition.com · cointelegraph.com · crypto.news · cryptobreaking.com · cryptobriefing.com · cryptonomist.ch · ethnews.com · eurweb.com · fintechnews.hk · livecoins.com.br · news-krypto.de · parhaatvedot.com · therogueginger.com · tronweekly.com

This summary has been updated 1 time: see revision history