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Binance affiliates filed a $472.8 million lawsuit against Hong Kong-based RedotPay this week, alleging the payments company unlawfully diverted more than 470,000 Binance Card users. The suit, filed against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao, claims RedotPay let users fund its stablecoin cards through Binance Pay beyond agreed contractual limits.
The Binance RedotPay lawsuit marks another significant legal battle in digital asset payments as Binance claims RedotPay violated the terms of a commercial agreement by allowing users to fund RedotPay-issued stablecoin payment cards through Binance Pay beyond agreed contractual limits.
According to court documents obtained by Bloomberg, Binance argues the alleged conduct significantly boosted RedotPay’s customer base and valuation as the fintech company reportedly explores the possibility of an initial public offering (IPO).
The Binance RedotPay lawsuit was filed by Binance affiliates Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao.
The plaintiffs argue that more than 470,000 customers who would otherwise have remained Binance Card users were allegedly redirected to RedotPay’s services.
Binance estimates each diverted customer carried a lifetime value of approximately $925, resulting in total damages of roughly $472.8 million.
A related lawsuit has also been filed by Chaintecs in Singapore, with court proceedings expected to continue as both jurisdictions examine the contractual dispute.
A Binance spokesperson told Cointelegraph:
“While Binance does not comment on ongoing litigation, where necessary we will use courts and other forums to pursue what is right.”
The statement underscores Binance’s intention to protect what it considers its contractual and commercial rights.
The Binance RedotPay lawsuit has been firmly rejected by RedotPay, which insists the allegations are without merit.
In a statement provided to Cointelegraph, a RedotPay spokesperson said:
“RedotPay is strenuously defending the proceedings.”
The company added that it remains confident in its legal position and will continue responding through the appropriate judicial process.
On its official website, RedotPay further stated:
“We are confident in our legal position, and are vigorously defending all claims.”
The company emphasized that ongoing litigation would not affect daily business operations or customer services.
The Binance RedotPay lawsuit arrives at a time when competition within crypto payment services has intensified dramatically.
RedotPay has experienced rapid expansion over the past year, reporting a global customer base exceeding 8 million users. The company also disclosed that its user base has increased by more than 33% during the past six months.
According to RedotPay, it currently generates approximately $180 million in annualized revenue while processing nearly $14 billion in annualized payment volume, highlighting the growing demand for stablecoin-based payment solutions.
Industry observers note that payment cards linked to cryptocurrencies and stablecoins have become a major battleground as digital asset companies compete to bridge traditional finance with blockchain-powered payments.
The Binance RedotPay lawsuit follows the collapse of what was once a strategic business relationship.
In December 2023, RedotPay announced an integration with Binance Pay, allowing users to directly top up RedotPay payment cards using Binance’s payment infrastructure.
However, Binance later confirmed it would discontinue Binance Pay support for RedotPay effective April 3, 2026, following a review of its merchant partnerships.
That decision effectively ended one of the companies’ most visible collaborations and preceded the current legal dispute.
The Binance RedotPay lawsuit may have broader implications for commercial agreements across the cryptocurrency industry.
As exchanges, payment providers, and fintech firms increasingly collaborate to expand stablecoin adoption, legal clarity surrounding partnership agreements and customer ownership could become increasingly important.
Legal experts have frequently noted that disputes involving user acquisition, commercial exclusivity, and contractual obligations are becoming more common as the crypto payments sector matures.
The outcome of the Binance RedotPay lawsuit could therefore establish an important reference point for future partnerships between exchanges and payment providers.
For now, Binance continues seeking nearly half a billion dollars in damages, while RedotPay maintains that the claims are unfounded and says it will vigorously defend itself in court.
Until judicial proceedings conclude, the Binance RedotPay lawsuit is expected to remain one of the crypto industry’s most closely watched legal battles.
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