Binance affiliates have filed a lawsuit in Hong Kong against RedotPay and three of its founders, alleging the payments company breached a commercial arrangement and redirected users tied to the Binance Card business. The plaintiffs are seeking $472.8 million in damages.
The case centers on claims that more than 470,000 Binance Card users were moved through Binance Pay outside the parties’ agreed terms. RedotPay has denied the allegations and said it will challenge the claims in court while keeping its business operations and expansion plans on track.
Who filed the case
According to Bloomberg, the Hong Kong action was brought by Binance-linked entities Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore. The defendants are RedotPay founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao.
The plaintiffs argue that the alleged conduct damaged the long-term value of the Binance Card business. Their claim frames the dispute as a breach of a commercial agreement rather than a broader regulatory or criminal matter.
How Binance calculated the claim
The lawsuit alleges that RedotPay diverted more than 470,000 Binance Card users through Binance Pay outside agreed commercial terms. Binance’s affiliates say that migration reduced the future value of the card business they had built around those users.
To estimate damages, the plaintiffs used a stated lifetime customer value of $925 per user. That calculation underpins the $472.8 million claim now being pursued in Hong Kong.
RedotPay rejects the accusations
RedotPay said it disputes all of the allegations and plans to defend itself through the courts. The company also said the legal fight will not interfere with day-to-day operations.
Alongside its response to the lawsuit, RedotPay pointed to continued growth in its business. It said it has surpassed eight million users globally, generated $180 million in annualized revenue, and reached about $14 billion in annualized payment volume. The company also said it is continuing to assess a possible U.S. public listing.
Related proceedings in Singapore
The Hong Kong lawsuit is not the only proceeding tied to the dispute. Chaintecs Consulting Singapore has also started related legal action in Singapore.
A hearing in the Singapore matter is scheduled for Friday, making that the next confirmed step in the broader dispute between the Binance affiliates and RedotPay. For now, the central claims remain contested, with Binance’s side alleging improper user diversion and RedotPay denying any wrongdoing.
Source: Coin Edition