Binance-affiliated companies have launched a nearly $473 million lawsuit against Hong Kong-based crypto payments firm RedotPay, accusing the company of using Binance's own payment infrastructure to divert more than 470,000 Binance Card users into its competing payment ecosystem.
The lawsuit, filed in Hong Kong and reported by Bloomberg, marks one of the largest commercial disputes in the crypto payments industry as competition intensifies over stablecoin-powered payment cards and digital spending services.
Binance claims RedotPay turned its own users into customers
According to the court filing, Binance alleges RedotPay breached the terms of a commercial partnership by allowing customers to fund RedotPay-issued stablecoin payment cards through Binance Pay in ways that went beyond the companies' agreement.
Rather than simply using Binance Pay as a payment rail, the plaintiffs claim the arrangement effectively encouraged Binance Card users to migrate to RedotPay's competing card platform, allowing the company to build its own customer base at Binance's expense.
The lawsuit was filed by Binance-linked entities Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao.
The plaintiffs are seeking approximately $472.8 million in damages, valuing each allegedly diverted customer at roughly $925 in lifetime revenue. Bloomberg also reported that Binance argues the disputed conduct contributed to RedotPay's rapid growth and higher corporate valuation as the payments company explores a potential initial public offering.
From partners to lawsuit
RedotPay has denied the accusations, describing them as "unfounded" and saying it intends to vigorously contest the claims. RedotPay also added that the litigation won't affect its day to day operations or customer service.
"We are confident in our legal position, and are vigorously defending all claims."
A Binance spokesperson declined to comment on the specifics of the litigation but told Cointelegraph that the exchange would use legal channels "to pursue what is right" when necessary. The dispute has now expanded beyond Hong Kong. Chaintecs has also filed a related lawsuit in Singapore, where court proceedings are scheduled to continue later this week.
The legal battle stems from a partnership announced in December 2023, when RedotPay integrated Binance Pay to allow users to top up RedotPay payment cards directly through Binance's payment network. That relationship later deteriorated.
In April 2026, Binance announced it would discontinue Binance Pay support for RedotPay as part of what it described as a broader review of its merchant partnerships. The pages describing the integration have since been removed, although archived references remain searchable.
The lawsuit now suggests the breakdown may have been driven by deeper commercial disagreements over customer ownership and user acquisition rather than a routine business review.
Stablecoin payments become the next battleground
The dispute arrives as crypto payment providers race to capture users through stablecoin-backed debit cards that allow customers to spend digital assets in everyday transactions.
RedotPay says it now serves more than 8 million users, generates approximately $180 million in annualized revenue, and processes around $14 billion in annualized payment volume, making it one of the fastest-growing companies in the sector.
The outcome of Binance's lawsuit could have broader implications for how crypto payment partnerships are structured, particularly where competing firms share payment infrastructure while simultaneously competing for the same customer base.
For now, both companies are preparing to fight the dispute in court, with the case expected to test not only the terms of their commercial agreement but also how far crypto firms can leverage shared payment networks without crossing contractual boundaries.
JinseFinance
Anais
Others
Cryptoknowmics
Bitcoinist
Cointelegraph