Binance has launched a legal case against RedotPay and its co-founders, seeking nearly $473 million in damages, alleging that the company improperly redirected over 470,000 Binance Card users, breaching their commercial agreement.
Summary
- Entities associated with Binance have filed a lawsuit against RedotPay for approximately $473 million, accusing the company of misdirecting over 470,000 Binance Card users.
- The lawsuit claims that RedotPay allowed users to load payment cards through Binance Pay beyond the parameters of their commercial agreement.
- RedotPay has denied the allegations, insisting that its operations will remain unaffected and that it is mounting a defense in court.
- The legal dispute coincides with RedotPay’s announcement of over 8 million users and its exploration of a potential U.S. IPO.
According to a report by Bloomberg on Wednesday, based on a filing in a Hong Kong court, Binance-affiliated firms have sued Hong Kong-based crypto payment provider RedotPay and its founders, alleging that the company improperly redirected users from the Binance Card service to its own stablecoin card.
The lawsuit seeks around $472.8 million in damages and comes at a time when RedotPay is expanding in the global payments industry while considering a possible initial public offering in the U.S.
Binance accuses RedotPay of user misdirection
As outlined in the Hong Kong court filing referenced by Bloomberg, Binance affiliates 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 funding its stablecoin payment cards with Binance Pay outside the agreed-upon commercial terms, leading to the loss of more than 470,000 Binance Card users to the RedotPay platform.
Bloomberg reported that the Binance-linked firms estimated damages based on a calculated lifetime customer value of $925 for each allegedly redirected customer, resulting in a total claim close to $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 scheduled for Friday.
RedotPay claims operations will continue unaffected
RedotPay has rejected the allegations, stating that it is actively contesting the claims through the appropriate legal channels.
In a statement on its website, RedotPay assured that the ongoing lawsuit would not disrupt its daily operations.
“We are confident in our legal position and are vigorously defending against all claims. As this matter is currently before the court, RedotPay will refrain from further comments on the allegations, ongoing proceedings, or any matters to be addressed within the judicial process,” the company stated.
Additionally, the company revealed updated operational metrics, highlighting a user base growth of over 33% in the last six months, now surpassing 8 million globally. RedotPay also reported an annual revenue of approximately $180 million and an annual payment volume around $14 billion.
Partnership history at the heart of the dispute
The legal claims stem from a commercial relationship established in December 2023, when RedotPay announced its support for Binance Pay deposits on its crypto payment cards.
At that time, RedotPay highlighted that this integration allowed Binance Pay users to transfer funds directly to RedotPay-issued cards, facilitating the use of stablecoins on its platform.
Links in RedotPay’s initial announcement on X now lead to inactive pages.
Subsequently, Binance announced its intention to discontinue Binance Pay features on the RedotPay platform effective April 3, 2026, following what the exchange termed a review of its merchant partnerships. Although the original page is no longer accessible, it remains indexed on Binance’s website.
This legal dispute also follows Binance’s restructuring of its international operations through local commercial partners in various jurisdictions. In the Philippines, for example, Binance regained access via BlockShoals Technologies under the country’s Strategic Regulatory Sandbox, moving away from its previous operational model.
RedotPay’s IPO goals provide context to Binance’s accusations
Bloomberg reported that Binance-related entities have claimed that the alleged customer diversion has adversely impacted RedotPay’s corporate valuation as it considers an initial public offering.
Earlier in the year, reports indicated that RedotPay was planning a U.S. listing that could raise in excess of $1 billion, potentially valuing the company at over $4 billion.
Founded in April 2023, RedotPay has expanded its stablecoin payment offerings through multicurrency wallets, crypto payment cards, and global payout solutions. Before announcing its IPO ambitions, the company revealed it had secured $194 million in funding in 2025 and achieved unicorn status while serving users in more than 100 markets.
The anticipated listing comes at a time of renewed momentum among crypto firms looking to enter public markets, with companies such as Circle and BitGo managing to complete public offerings amid rising demand for regulated digital asset enterprises.
The proceedings in Hong Kong and the concurrent case in Singapore are ongoing, with both Binance and RedotPay committed to resolving the dispute through the legal system.
