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Binance, RedotPay dispute fate of Singapore lawsuit

Created at 12 Aug · 10:25 AM1 source↑ Market-relevant
IN SHORT

Binance and RedotPay are in disagreement over the future of a Singapore lawsuit concerning a $473 million legal dispute. RedotPay expects Binance to drop the case, while Binance states its claims remain active.

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Key Numbers

$473 millionlegal dispute amount
470,000Binance Card users allegedly diverted
$925claimed lifetime customer value per user

Who's Involved

Binance
Cryptocurrency exchange involved in a legal dispute
RedotPay
Stablecoin payments card issuer in a legal dispute
Nest Trading
Plaintiff in Hong Kong legal action
Distributed Technologies
Plaintiff in Hong Kong legal action
Chaintecs Consulting Singapore
Plaintiff in Hong Kong and Singapore legal actions

↳ Why This Matters

The conflicting statements highlight ongoing legal tensions between major crypto players, potentially impacting user trust and the operational landscape for payment services within the digital asset ecosystem.

Key facts

  • Binance and RedotPay are disputing the status of a Singapore lawsuit.
  • RedotPay expects Binance to discontinue the Singapore proceedings.
  • Binance stated that its claims are not being withdrawn and remain active.
  • The dispute is part of a larger legal battle involving nearly $473 million in damages.
  • Hong Kong plaintiffs allege RedotPay diverted Binance Card users through unauthorized stablecoin top-ups.

Binance and RedotPay are engaged in a dispute over whether a Singaporean lawsuit, stemming from a larger legal battle concerning approximately $473 million, will be concluded. RedotPay indicated on Tuesday that it anticipates Binance will cease the Singapore proceedings following a hearing scheduled for August 7. A RedotPay spokesperson stated the company would seek legal costs from the claimant if the matter is discontinued. However, Binance has refuted these expectations, asserting that reports of withdrawal are false and that the company is actively pursuing its claims, having informed both the court and RedotPay of this stance.

The disagreement is the latest development in an ongoing legal conflict between companies affiliated with Binance and RedotPay. This broader fight includes a separate Hong Kong case where Binance-affiliated entities Nest Trading, Distributed Technologies, and Chaintecs Consulting Singapore are seeking nearly $473 million in damages. The Hong Kong plaintiffs allege that RedotPay diverted over 470,000 Binance Card users by enabling the use of Binance Pay funds for stablecoin card top-ups, an action they claim violated a commercial agreement. They estimated the damages based on a lifetime customer value of $925 per user.

Chaintecs also initiated related legal actions against RedotPay affiliates in Singapore. RedotPay has previously rejected these allegations as unfounded and stated its intention to defend against the claims. The company announced a Binance Pay partnership in December 2023, which allowed direct deposits to RedotPay cards. Binance subsequently ended support for this integration in April 2024, citing a review of its merchant partners, several months before the legal dispute became public.

Frequently asked questions

The legal dispute involves nearly $473 million in damages.

Plaintiffs allege RedotPay diverted Binance Card users by allowing unauthorized stablecoin top-ups for its cards.

Binance ended support for the integration in April 2024.

What Happens Next

01A hearing is scheduled for August 7 regarding the Singapore proceedings.

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How It Developed

Binance-linked entities filed a petition in Hong Kong against RedotPay's co-founders.
Plaintiffs alleged RedotPay diverted Binance Card users by allowing unauthorized stablecoin top-ups.
Estimated damages in the Hong Kong case were $472.8 million.
Related proceedings were brought against RedotPay affiliates in Singapore.
RedotPay expects Binance to discontinue the Singapore proceedings.
Binance denied plans to withdraw its Singapore claims, stating they remain active.
Binance ended support for a RedotPay integration in April 2024.

Sources

T1
Binance, RedotPay clash over fate of Singapore lawsuitAmid a $473 million legal dispute, RedotPay says it expects Binance to end its Singapore case, while Binance says its claims remain active.Cointelegraph

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