Binance sues RedotPay over alleged diversion of 470,000 Binance Card users and seeks $473 million

Binance has taken its Hong Kong crypto payments partner RedotPay to court, claiming the service routed users away from Binance Card and into its own product. For PSPs and crypto payment providers, the case is a useful reminder that card-linked flows, wallet top-ups, and partner permissions can turn into litigation very quickly once volumes are large enough.

1. Three Binance-linked entities — Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore — filed the complaint, accusing RedotPay of breaching a commercial agreement governing the exchange’s relationship with the service.
2. Binance says RedotPay redirected funds from more than 470,000 Binance Card users to RedotPay. The exchange also alleges that RedotPay allowed card top-ups in stablecoins via Binance Pay outside the agreed terms, which Binance says pushed card users onto RedotPay’s platform.
3. The claim is for $473 million, calculated from an estimated lifetime value of $925 for each allegedly diverted customer. Chaintecs Consulting also filed a parallel lawsuit in Singapore against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. Bloomberg said the hearing is set for Friday.
4. RedotPay says the allegations are unfounded and that it will defend itself in court while continuing normal operations. The dispute comes months after Binance ended support for RedotPay and switched off Binance Pay on the platform on 3 April.
5. RedotPay is also preparing for an IPO this year. JPMorgan Chase, Goldman Sachs, and Jefferies Financial Group have advised the company on a potential New York listing. In September and December last year, RedotPay raised $194 million from investors including Coinbase Ventures, Circle Ventures, and Blockchain Capital. In December 2025, its annual payment volume exceeded $10 billion.

For high-risk operators, the practical point is simple: when a PSP sits inside a large partner ecosystem, the commercial agreement is not paperwork. It is the thing that decides who owns the user relationship, who can route funds where, and who ends up explaining the economics to a judge.