Binance filed a lawsuit in Hong Kong against RedotPay, accusing the company of diverting more than 470,000 Binance Card users. Binance-linked entities are seeking nearly $473 million in damages over an alleged breach of their commercial agreement. Bloomberg first reported the filing, citing court documents.
What happened
The lawsuit was filed in a Hong Kong court on August 5. Three Binance-affiliated companies, Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore, accused the Hong Kong payments firm of pulling Binance Card users onto its own product.
According to the filing, RedotPay allegedly let users fund their stablecoin cards through Binance Pay outside the terms of the partnership. More than 470,000 Binance Card holders reportedly switched to RedotPay cards as a result.
The claim totals $472.8 million. Binance's lawyers tied the figure to an expected lifetime customer value, pricing each diverted user at $925.
The stablecoin-funded card market has been growing fast. Users in countries where international bank cards remain expensive or hard to get increasingly turn to these products for subscriptions, overseas purchases and travel spending. That is why the fight over every active customer in this niche has turned into a lawsuit with a nine-figure price tag.
Who is involved
The defendants are RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao. RedotPay itself is registered in Hong Kong and specializes in stablecoin-funded cards for everyday spending.
Binance Card itself runs on Visa rails and lets holders spend crypto straight from their exchange balance at regular stores, converting coins at the moment of payment. The product launched back in 2020, and the client base built up since then is now at the center of the court fight. RedotPay offers similar functionality but without tying users to one specific exchange, which makes it attractive to people who hold assets across several wallets at once.
A separate suit against the same defendants was filed by Chaintecs Consulting Singapore, this time in a Singapore court. A hearing in the Singapore case is set for Friday, August 7.
RedotPay has grown into a notable name in crypto payments: the company serves more than 8 million customers worldwide and, according to representatives, is weighing an IPO. That prospect makes Binance's lawsuit especially sensitive for RedotPay's leadership.
The roots of the dispute
The partnership between Binance Pay and RedotPay began in December 2023. RedotPay announced an integration that let Binance Pay wallet holders top up RedotPay cards directly, without routing funds through a bank or a separate exchange.
In April 2026, Binance ended support for Binance Pay features on the RedotPay platform, calling it a scheduled review of merchant partner terms. Binance says it noticed a sharp outflow of card users to the rival right after that decision.
Calculating damages through lifetime customer value is a common approach in user-poaching cases, though the $925 figure itself is an estimate and will likely face pushback in court. In effect, RedotPay and Binance are chasing the same audience: people who want to spend stablecoins abroad without a traditional bank account. The bigger that audience gets, the costlier it becomes to lose a single customer to a rival.
Key figures from the lawsuit:
- more than 470,000 Binance Card users allegedly shifted to RedotPay
- $472.8 million in claimed damages
- $925 lifetime value per customer used in the calculation
- April 3, 2026, the date the Binance Pay and RedotPay partnership ended
Funds loaded through USDT and other stablecoins remain the main source of funding for RedotPay cards. For Binance, the dispute is therefore about more than reputation. It is about a direct loss of transaction volume.
How both sides responded
RedotPay rejects the accusations. A company spokesperson told Cointelegraph that RedotPay is "strenuously defending the proceedings" and called Binance's claims unfounded. The company said the litigation will not affect its day-to-day operations.
"Binance does not comment on ongoing litigation, but where necessary we will use courts and other forums to pursue what is right."
- Binance spokesperson, comment to Cointelegraph
RedotPay also said its business keeps growing despite the dispute: its user base grew more than 33% over the past six months, annualized revenue is estimated at $180 million, and annualized payment volume tops $14 billion. Those numbers help explain why Binance is fighting the outflow in court. A stablecoin-card rival is growing faster than expected.
The case shows how tightly the products of competing companies stay linked even after a partnership officially ends. The technical ability to top up through Binance Pay apparently persisted past April, and that loophole is now the subject of a lawsuit worth hundreds of millions of dollars. Day-to-day card users on either side are unlikely to feel any immediate impact, but the fight will shape how exchanges structure similar partnerships with payments startups going forward.
The Singapore hearing will be the first public test of both sides' positions. The Hong Kong case will likely stretch on for months, since both parties have already laid out sharply different accounts of events. Until a ruling lands, both companies will keep competing for customers in the same stablecoin-card market, where losing in court would cost more than money. It would cost trust among users.
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