- Binance filed a $472.8 million lawsuit accusing RedotPay of diverting 470,000 Binance Card users, while RedotPay denied wrongdoing publicly immediately.
- Binance claims RedotPay breached commercial terms and seeks damages while Singapore proceedings run alongside Hong Kong litigation separately.
- RedotPay reported eight million users with $180 million annualized revenue and $14 billion payment volume while evaluating a United States listing.
Binance has filed a $472.8 million lawsuit against crypto payments company RedotPay, accusing the firm of breaching a commercial agreement and diverting more than 470,000 Binance Card users. RedotPay has denied the allegations and stated the legal dispute will not affect its operations or expansion plans.
According to Bloomberg, Binance affiliates Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore filed the lawsuit in Hong Kong against RedotPay founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. The companies allege RedotPay redirected Binance Card users through Binance Pay outside agreed commercial terms.
Moreover, Binance claims the alleged customer migration reduced the long-term value of its Binance Card business. Consequently, the company calculated damages using an estimated lifetime customer value of $925 for each affected user, bringing the total claim to approximately $472.8 million. In addition to the Hong Kong proceedings, Chaintecs has filed a related legal case in Singapore, with a hearing scheduled for Friday.
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Binance argues customer transfers breached commercial agreement
Binance maintains the agreement established clear rules governing customer referrals and payment services. However, the company alleges RedotPay diverted users beyond those agreed terms. Binance argues the alleged transfers caused significant commercial losses by reducing the long-term value of its card business.
Additionally, the lawsuit claims more than 470,000 Binance Card users moved through Binance Pay because of RedotPay’s actions. Binance believes those users represented substantial future revenue, forming the basis of its damages claim.
However, RedotPay rejected every allegation and confirmed it will contest the lawsuit through the courts. The company also stated the proceedings will not interrupt daily operations or broader business plans.
RedotPay highlights growth despite legal challenge
RedotPay also highlighted its recent business performance while responding to Binance’s claims. The company reported more than eight million users worldwide, together with approximately $180 million in annualized revenue and nearly $14 billion in annualized payment volume.
Moreover, RedotPay disclosed it is evaluating a potential public listing in the United States, although it provided no further details.
Conclusion
The dispute has developed into one of the crypto sector’s largest commercial legal battles. Binance is seeking substantial damages over alleged customer diversion, while RedotPay maintains the claims lack merit and intends to defend its position through the legal process.
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