Binance Files $473M Lawsuit Against RedotPay for Alleged User Misappropriation
Binance has filed a lawsuit against RedotPay and its co-founders, seeking nearly $473 million in damages, alleging that the company improperly diverted over 470,000 Binance Card users, which breaches their commercial agreement.
Summary
- Entities associated with Binance have initiated a legal case against RedotPay for approximately $473 million, claiming the diversion of more than 470,000 Binance Card users.
- The lawsuit contends that RedotPay allowed users to load its payment cards through Binance Pay, exceeding the terms of their commercial agreement.
- RedotPay has countered these accusations, asserting that its operations will continue as normal and that it is mounting a defense in court.
- The legal dispute surfaces as RedotPay reports having over 8 million users and considers the possibility of a U.S. IPO.
According to a report from Bloomberg on Wednesday, derived from a filing in a Hong Kong court, Binance-linked firms have sued the Hong Kong-based crypto payment provider RedotPay and its founders, claiming the company falsely redirected customers from the Binance Card to its own stablecoin card service.
The lawsuit seeks around $472.8 million in damages and coincides with RedotPay’s continuous growth in the global payments arena, as it evaluates a potential U.S. initial public offering.
Binance accuses RedotPay of user diversion
As referenced in the Hong Kong court filing highlighted by Bloomberg, Binance affiliates Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore have charged RedotPay with violating the commercial agreement that defined their partnership.
The plaintiffs claim that RedotPay facilitated users in funding its stablecoin payment cards via Binance Pay outside of the agreed-upon commercial terms, leading to the transfer of over 470,000 Binance Card users to RedotPay’s platform.
Bloomberg reported that the Binance-associated firms evaluated the damages based on a lifetime customer value of $925 for each allegedly diverted user, culminating in a total claim of nearly $473 million.
Chaintecs Consulting Singapore has also filed a related lawsuit in Singapore against RedotPay’s co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. A hearing for this case is expected on Friday.
RedotPay maintains operations will continue unaffected
RedotPay has rejected the allegations, stating that it is actively challenging the claims through the requisite legal processes.
In a statement released on its website, RedotPay assured that the lawsuit would not impede its day-to-day functions.
“We are confident in our legal position and are vigorously contesting all claims. As this matter is currently in court, RedotPay will refrain from further comments on the allegations, ongoing proceedings, or issues to be resolved through the judiciary,” the company explained.
Additionally, the company provided updated operational figures showing a growth of over 33% in its user base over the past six months, now surpassing 8 million globally. RedotPay also reported an annual revenue nearing $180 million and an annual payment volume of approximately $14 billion.
The history of partnership at the heart of the dispute
The legal issues stem from a business relationship established in December 2023, when RedotPay declared its support for Binance Pay deposits on its crypto payment cards.
At that time, RedotPay indicated that this integration enabled Binance Pay users to transfer funds directly to RedotPay-issued cards, enhancing the use of stablecoins within the platform.
Links in RedotPay’s initial announcement on X now direct to non-functional pages.
Subsequently, Binance announced it would discontinue Binance Pay features on the RedotPay platform effective April 3, 2026, following what the exchange described as a review of its merchant partnerships. Though the original page is no longer accessible, it remains indexed on Binance’s website.
This conflict comes in the wake of Binance restructuring various international operations through local commercial partners across multiple jurisdictions. For instance, in the Philippines, Binance regained access via BlockShoals Technologies under the country’s Strategic Regulatory Sandbox instead of reverting to its prior operational model.
RedotPay’s IPO aspirations add context to Binance’s claims
Bloomberg reported that the Binance-related companies contend the alleged diversion of customers has negatively impacted RedotPay’s corporate valuation as it considers an initial public offering.
Earlier in the year, sources suggested that RedotPay was contemplating a U.S. listing that could potentially raise over $1 billion, valuing the company at more than $4 billion.
Founded in April 2023, RedotPay has expanded its stablecoin payment options through multicurrency wallets, crypto payment cards, and global payout solutions. Prior to announcing its IPO ambitions, the company indicated it had secured $194 million in funding during 2025 and achieved unicorn status while serving users in over 100 markets.
The anticipated listing coincides with a resurgence of activity among crypto companies seeking to enter the public market, with firms like Circle and BitGo successfully completing public offerings in response to heightened demand for regulated digital asset institutions.
The ongoing proceedings in Hong Kong and the associated case in Singapore see both Binance and RedotPay committed to resolving the conflict through legal channels.