Binance affiliates sue RedotPay over alleged diversion of 470,000 Binance Card users and $472.8 million in damages

Binance-linked companies have sued Hong Kong-based cryptocurrency payments firm RedotPay, accusing it of steering more than 470,000 Binance Card users into its own stablecoin payment cards under a commercial agreement. The filing matters for high-risk PSPs because it is not just a commercial dispute; it is a dispute over user migration, card funding rails, and the value attached to each redirected customer.

1. According to a Hong Kong court filing cited by Bloomberg, Binance Holdings affiliates Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore filed the petition against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao.
2. Binance alleges that RedotPay allowed users to fund RedotPay stablecoin payment cards with Binance Pay outside the scope of the agreement. The core claim is that RedotPay diverted more than 470,000 users from Binance Card.
3. The plaintiffs are seeking nearly $473 million in damages, with Binance putting the figure at $472.8 million based on a lifetime customer value of $925 per user. In other words, the dispute is being priced as a customer base transfer, not just a contract breach.
4. Bloomberg reported that the alleged conduct contributed to RedotPay’s valuation as it considers a potential initial public offering. Chaintecs also filed a related lawsuit in Singapore, where a hearing is scheduled for Friday.
5. RedotPay said on its website that the legal proceedings will not affect its operations and that it will contest the claims. The company said: “We are confident in our legal position, and are vigorously defending all claims.”

For payments companies in crypto and other high-risk verticals, the practical takeaway is straightforward: commercial agreements around card funding, wallet routing, and user acquisition can turn into valuation disputes very quickly when one side claims the other crossed the line on scope. Here, the numbers are doing a lot of the work: 470,000 users, $925 lifetime value per user, and $472.8 million in claimed damages.