Key Points:
- Binance-affiliated companies have filed lawsuits against RedotPay and its co-founders, seeking nearly $473 million in damages.
- Binance alleges RedotPay improperly diverted more than 470,000 Binance Card users in breach of a commercial agreement.
- RedotPay has denied the allegations, saying it will vigorously defend itself while maintaining normal business operations.
Binance Files Multi-Million Dollar Lawsuit
Binance-affiliated companies have initiated legal proceedings against Hong Kong-based cryptocurrency payments firm RedotPay, accusing the company of violating a commercial agreement and diverting hundreds of thousands of users from Binance’s payment ecosystem.
According to reports citing Hong Kong court filings, the plaintiffs are seeking approximately $472.8 million in damages, alleging that RedotPay’s actions significantly benefited its business while harming Binance’s payment operations.
The case represents one of the largest commercial disputes to emerge in the digital asset payments sector.
Alleged Diversion of Binance Card Users
The lawsuit alleges that RedotPay redirected more than 470,000 Binance Card users by allowing customers to fund RedotPay’s stablecoin payment cards using Binance Pay outside the terms agreed between the companies.
The plaintiffs include Binance affiliates Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore, which have filed legal actions against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao.
A related lawsuit has also been filed by Chaintecs in Singapore, where court proceedings are scheduled to continue.
According to the filings, the plaintiffs estimate each allegedly diverted customer represents approximately $925 in lifetime value, forming the basis for the nearly $473 million damages claim.
RedotPay Rejects Allegations
RedotPay has strongly denied the accusations and said it intends to defend the claims through the appropriate legal process.
In a statement, the company said the litigation will not affect its day-to-day operations or its ongoing services.
RedotPay stated that it remains confident in its legal position and will continue responding through the courts while declining to comment further on issues that are currently under judicial review.
Competition Intensifies in Stablecoin Payments
The dispute comes as cryptocurrency payment providers compete aggressively to expand stablecoin-based payment services worldwide.
RedotPay said its platform now serves more than 8 million users globally, with its customer base growing by more than 33% during the past six months.
The company also reported approximately $180 million in annualized revenue and roughly $14 billion in annualized payment volume, highlighting the rapid growth of blockchain-based payment infrastructure.
Partnership Dates Back to 2023
RedotPay and Binance previously announced a partnership in December 2023, allowing Binance Pay users to make direct deposits to RedotPay payment cards.
According to the lawsuit, Binance now argues that aspects of RedotPay’s implementation exceeded the scope of the commercial agreement between the companies.
A Binance spokesperson declined to discuss details of the ongoing litigation but stated that the company will pursue its legal rights through the appropriate judicial channels where necessary.
Outlook
The legal dispute between Binance-affiliated companies and RedotPay underscores the increasing commercial competition within the digital payments sector as stablecoin adoption accelerates globally. As cryptocurrency payment providers expand into mainstream financial services, contractual partnerships and customer ownership are becoming increasingly valuable strategic assets. The outcome of the litigation could influence how future collaborations between exchanges and crypto payment providers are structured as the industry continues to mature.
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