Binance Seeks $473M From RedotPay Over Alleged Card User Diversion 

Highlights:

• Binance affiliates seek $472.8 million over the alleged diversion of more than 470,000 card users.
• RedotPay denies the claims and says the proceedings will not affect daily operations.
• A related Singapore case adds another court track to the Hong Kong dispute.

Binance-linked companies have opened a $472.8 million legal fight against a Hong Kong stablecoin payments business. The claim accuses its founders of steering more than 470,000 Binance Card users into another card program. Bloomberg reported the case after reviewing a court petition filed by three Binance affiliates.

Those plaintiffs include Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore. Meanwhile, the defendants include co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. The filing centers on a partnership that connected Binance Pay with the payments firm’s services.

Binance Details Alleged Breach Under Card Agreement

Under the agreement, customers could use Binance Pay for approved transfers, conversions, and selected purchases. However, Binance claims the founders permitted those funds to support card top-ups outside the agreed scope. The plaintiffs allege that this setup encouraged users to shift activity from Binance Card into a competing product. Moreover, they claim roughly $304 million moved from Binance Pay into the other company’s ecosystem.

Binance estimates that more than 470,000 users followed that route during the partnership. It then valued each customer at $925 in expected lifetime revenue. Therefore, the companies calculated their requested damages at approximately $472.8 million. The petition argues that those users supported RedotPay’s commercial growth and later valuation.

Binance Sues Largest Crypto Card Company RedotPay, Alleges User Diversion and Seeks $472.8 Million

According to Bloomberg, Binance-affiliated entities Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore filed a lawsuit in Hong Kong against RedotPay… pic.twitter.com/o9MFy7zkEE

— Wu Blockchain (@WuBlockchain) August 5, 2026

Additionally, Chaintecs filed related proceedings in Singapore against entities connected with the card provider. A Singapore hearing has been scheduled for Friday, according to the report. The court actions now place the partnership terms, payment routes, and customer ownership at the dispute’s center.

RedotPay Rejects Claims And Keeps Operations Running

RedotPay rejected the allegations and said the proceedings would not disrupt daily business. The firm also said it felt confident about its legal position and would defend every claim. Still, the firm declined further comment while courts consider the dispute. Its statement addressed users, business partners, and the community after Bloomberg published its report.

Furthermore, the company said user spending reached a monthly record on-chain during the previous month. It also cited Paymentscan rankings that placed its card program first among tracked crypto payment cards. At the same time, management repeated its focus on stablecoin payments, access, security, and regulatory compliance.

The lawsuit arrives while the payments company studies a New York stock market listing. Bloomberg reported in February that the offering could raise more than $1 billion. Moreover, the proposed deal could value the business above $4 billion. JPMorgan, Goldman Sachs, and Jefferies have worked with the company on the potential transaction.

However, talks remain private, and the timing, size, and valuation could still change. The possible listing has attracted attention after the company expanded its stablecoin card and wallet services. Earlier reporting said it raised $194 million last year and reached unicorn status. It also counted more than six million registered users by November last year. 

Meanwhile, RedotPay has expanded into Asian payment markets. It launched crypto payment cards in South Korea in May last year. The firm cited strong local crypto adoption and consumer interest in digital payment options.