Binance-affiliated companies have filed a lawsuit in Hong Kong against the founders of crypto payments firm RedotPay, seeking $472.8m in damages.
The petition alleges RedotPay diverted Binance users to a competing card product as part of a “fraudulent scheme”, Bloomberg News reported citing the court document.
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The petition was filed by Binance Holdings-linked entities Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore. The respondents are RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao.
Binance alleges the dispute stems from an agreement signed last year that was intended to expand distribution for both parties. Under the arrangement, RedotPay was expected to gain access to Binance’s user base, while Binance payment services were to be made available across a broader network.
In the filing, Binance claims the agreement was breached after users were allowed to top up a RedotPay stablecoin payment card outside the permitted scope.
“Since March 2026, the Binance Group has discovered that RedotPay Group had been allowing and encouraging Binance Pay funds to be used, without segregation, for the prohibited use within RedotPay, including card top-ups for RedotPay Card,” Binance said in the filing.
Binance estimates that more than 470,000 customers were channelled from Binance Card to RedotPay. Based on an estimated lifetime value of $925 per customer, Binance is claiming $472.8m in losses.
The filing also alleges the partnership enabled RedotPay to receive about $304m in user funds from Binance Pay.
In a separate statement, RedotPay said it is aware of Bloomberg’s article on the legal proceedings initiated by Binance and is “vigorously defending all claims”. The company added that the proceedings will have no impact on its “day-to-day operations”.
Founded in 2023, RedotPay offers virtual and physical crypto debit cards on the Visa network. The cards can be topped up with stablecoins, enabling payments at retailers and online merchants.
The lawsuit follows earlier reports that RedotPay has been considering an initial public offering at a potential $4bn valuation.
Chaintecs has also filed a separate lawsuit against RedotPay affiliates in Singapore, according to the report.
