Binance has sued RedotPay and its co-founders for nearly $473 million, alleging the company diverted more than 470,000 Binance Card users in breach of a commercial agreement.
Bloomberg, citing a Hong Kong court filing it obtained, reported on Wednesday that Binance-affiliated companies have filed legal action against Hong Kong-based crypto payments firm RedotPay and its founders, accusing the company of improperly redirecting users from Binance Card to its own stablecoin payment card service.
The lawsuit seeks about $472.8 million in damages and comes as RedotPay continues expanding its global payments business while weighing a potential U.S. initial public offering.
Binance says RedotPay diverted Binance Card users
According to the Hong Kong court filing cited by Bloomberg, Binance affiliates Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore have accused RedotPay of violating a commercial agreement that governed how the two companies worked together.
The plaintiffs allege RedotPay allowed users to fund its stablecoin payment cards through Binance Pay outside the agreed commercial terms, leading more than 470,000 Binance Card users to migrate to RedotPays platform.
Bloomberg reported that the Binance-linked companies estimated damages using a lifetime customer value of $925 for each allegedly diverted customer, bringing the total claim to nearly $473 million.
Chaintecs Consulting Singapore has also filed a related lawsuit in Singapore against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao. Bloomberg reported that a hearing in that case is scheduled for Friday.
RedotPay says lawsuit will not disrupt operations
RedotPay rejected the allegations and said it is actively defending the claims through the appropriate legal process.
In a statement published on its website, RedotPay said the litigation would not affect its day-to-day business.
“We are confident in our legal position, and are vigorously defending all claims. As the matter is currently before the court, RedotPay will not be commenting further on the allegations, the ongoing proceedings, or matters that will be addressed through the judicial process,” the company said.
The company also disclosed updated operating figures, saying its user base has grown by more than 33% over the past six months to exceed 8 million customers globally. RedotPay added that it now generates about $180 million in annualized revenue and processes roughly $14 billion in annualized payment volume.
Partnership history sits at the center of the dispute
The legal claims stem from a commercial relationship that dates back to December 2023, when RedotPay announced support for Binance Pay deposits on its crypto payment cards.
At the time, RedotPay said the integration allowed Binance Pay users to transfer funds directly onto RedotPay-issued payment cards, making it easier to spend stablecoins through the platform.
Links contained in RedotPays original announcement on X now lead to unavailable pages.
Binance later 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 partners. While the original webpage no longer loads, it remains searchable on Binances website.
The dispute also comes after Binance reorganized parts of its international operations through local commercial partners in several jurisdictions. In the Philippines, for example, Binance resumed access through BlockShoals Technologies under the countrys Strategic Regulatory Sandbox instead of returning under its previous operating model.
RedotPay IPO plans add context to Binance claims
Bloomberg reported that the Binance-linked companies argued the alleged diversion of customers contributed to RedotPays corporate value as the company considers an initial public offering.
Earlier this year, it was reported that RedotPay was exploring a U.S. listing that could raise more than $1 billion and value the company at over $4 billion.
Founded in April 2023, RedotPay has expanded its stablecoin payments business through multicurrency wallets, crypto payment cards and global payout services. Before announcing its IPO plans, the company said it had raised $194 million during 2025 and reached unicorn status while serving users across more than 100 markets.
The reported listing plans emerged during a period of renewed activity for crypto companies entering public markets, with firms including Circle and BitGo completing public listings as investor demand for regulated digital asset businesses strengthened.
The Hong Kong proceedings and the related Singapore case are continuing, while both Binance and RedotPay have said they will address the dispute through the courts.