Binance Files $473 Million Lawsuit Against RedotPay for Alleged User Diversion
Binance has taken legal action against RedotPay and its founders, claiming nearly $473 million in damages for allegedly diverting over 470,000 Binance Card users, which they argue breaches their commercial contract.
Summary
- A lawsuit has been filed by Binance-related entities against RedotPay, seeking damages of approximately $473 million for allegedly redirecting over 470,000 Binance Card users.
- The lawsuit claims that RedotPay allowed users to fund its payment cards through Binance Pay, outside the terms of their agreement.
- RedotPay has denied these allegations, stating that its operations will continue without interruption and that it is mounting a defense in court.
- This legal battle unfolds as RedotPay reports over 8 million users and considers a potential U.S. IPO.
On Wednesday, Bloomberg reported based on a court filing in Hong Kong that Binance-associated firms have sued the crypto payments company RedotPay and its founders, accusing them of improperly redirecting users from Binance Card to their bundled stablecoin card service.
The lawsuit seeks around $472.8 million in damages and coincides with RedotPay’s ongoing growth in the global payments landscape, as it weighs a possible U.S. IPO.
Binance accuses RedotPay of user redirection
According to the Hong Kong court filing referenced by Bloomberg, Binance affiliates like Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore have accused RedotPay of violating the commercial agreement that governed their partnership.
The plaintiffs contend that RedotPay facilitated users in loading funds onto its stablecoin cards using Binance Pay outside the specified commercial terms, leading to the transfer of more than 470,000 users from Binance Card to RedotPay.
Bloomberg noted the damaged was calculated at a lifetime customer value of $925 for each user allegedly diverted, resulting in a claim nearing $473 million.
Chaintecs Consulting Singapore has also initiated a related lawsuit in Singapore against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao, with a hearing expected this Friday.
RedotPay claims business will continue as usual
RedotPay has refuted the allegations, stating it is actively contesting the claims through the proper legal channels.
In a statement on its website, RedotPay asserted that the lawsuit would not impede its day-to-day operations.
“We are confident in our legal position and are vigorously defending against all claims. Since this matter is currently before the court, RedotPay will refrain from further comments on the allegations or ongoing proceedings,” the company remarked.
Additionally, the company disclosed updated operational figures, indicating a user growth of over 33% in the last six months, currently totaling more than 8 million worldwide. RedotPay also reported an annual revenue of approximately $180 million and annual payment volumes around $14 billion.
Historical partnership at the core of the dispute
The legal conflict originates from a partnership formed in December 2023 when RedotPay announced its acceptance of Binance Pay deposits on its crypto payment cards.
At that time, RedotPay highlighted that this integration allowed Binance Pay users to directly fund RedotPay-issued cards, simplifying stablecoin transactions on the platform.
Links within RedotPay’s initial announcement on X now lead to inactive pages.
Subsequently, Binance announced it would discontinue Binance Pay services on the RedotPay platform as of April 3, 2026, after what it termed a review of its merchant partnerships. The original page, though no longer accessible, is still indexed on Binance’s website.
This dispute also follows Binance’s restructuring of international operations through local partnerships across multiple jurisdictions. For example, in the Philippines, Binance has regained access through BlockShoals Technologies under the Strategic Regulatory Sandbox rather than reverting to its previous operational model.
RedotPay’s IPO aspirations provide context to Binance’s claims
According to Bloomberg, Binance-related entities have argued that the alleged redirection of users has impacted RedotPay’s corporate valuation as it considers an IPO.
Earlier this year, reports suggested that RedotPay was contemplating a U.S. listing that could raise over $1 billion, giving the company a valuation exceeding $4 billion.
Founded in April 2023, RedotPay has expanded its stablecoin payment services through multicurrency wallets, crypto payment cards, and global payout solutions. Before expressing IPO intentions, the company reported securing $194 million in funding in 2025 and achieving unicorn status, serving users across more than 100 markets.
This potential listing coincides with a resurgence of activities among crypto companies aiming to enter public markets, with firms like Circle and BitGo successfully completing public offerings due to increased demand for regulated digital asset solutions.
The proceedings in Hong Kong and the related case in Singapore are ongoing, with both Binance and RedotPay committed to resolving the matter through judicial means.
