Binance-affiliated companies have sued Hong Kong-based cryptocurrency payments company RedotPay, alleging it diverted more than 470,000 users from Binance Card in breach of their commercial agreement.
The plaintiffs seek nearly $473 million in damages, arguing the alleged conduct helped fuel RedotPays growth as the company pursues a potential initial public offering (IPO), Bloomberg reported Wednesday, citing a Hong Kong court filing it obtained.
RedotPay said it is defending the proceedings and rejected what it described as “unfounded allegations” against the company and its co-founders. “RedotPay is strenuously defending the proceedings,” a RedotPay spokesperson told Cointelegraph, adding that it will respond through the appropriate legal process.
The legal dispute comes as crypto payments companies compete to expand stablecoin-based spending products, with RedotPay reporting rapid growth and a user base of more than 8 million customers globally.
Binance alleges RedotPay violated an agreement
According to the report, Binance alleged that RedotPay diverted more than 470,000 users from Binance Card in breach of a commercial agreement by allowing users to fund RedotPay stablecoin payment cards with Binance Pay outside the agreed terms.
Binance Holdings-affiliated entities, including Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore reportedly filed a petition against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao. Chaintecs filed a related lawsuit in Singapore, where a hearing is scheduled for Friday.
The plaintiffs estimated damages of $472.8 million, based on a claimed lifetime customer value of $925 per user.
Binance did not comment on the details of the litigation to Cointelegraph. A Binance spokesperson said: “While Binance does not comment on ongoing litigation, where necessary we will use courts and other forums to pursue what is right.”
RedotPay says lawsuit will not affect operations
RedotPay said the proceedings will not affect its day-to-day operations and that it will continue defending itself through the legal process.
“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 in a statement on its website.
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The company also highlighted its recent growth, saying its user base increased by more than 33% over the past six months to more than 8 million customers. RedotPay said it has annualized revenue of about $180 million and annualized payment volume of about $14 billion.
RedotPay originally announced its Binance Pay partnership in December 2023, saying the integration allowed Binance Pay users to make direct deposits to RedotPay cards. Links shared in the announcement post on X now point to unavailable pages.
Binance later announced that it ended support for Binance Pay features on the RedotPay platform effective April 3, 2026, as part of a review of its merchant partners. The announcement is no longer accessible through Binances website but remains available in search results on its website.