Binance-affiliated companies have sued the founders of Hong Kong-based cryptocurrency payments company RedotPay, alleging it diverted more than 470,000 users from Binance Card in breach of their commercial agreement.
The plaintiffs seek nearly $473 million in damages, alleging the conduct contributed to RedotPay’s valuation as the company considers a potential initial public offering, Bloomberg reported Wednesday, citing a Hong Kong court filing it obtained.
RedotPay said it is defending the proceedings and rejected what it described as “unfounded allegations” against the company and its co-founders. “RedotPay is strenuously defending the proceedings,” a RedotPay spokesperson told Cointelegraph, adding that it will respond through the appropriate legal process.
The legal dispute comes as crypto payments companies compete to expand stablecoin-based spending products, with RedotPay reporting rapid growth and a global user base of more than 8 million customers.
Binance alleges RedotPay breached an agreement
According to the report, Binance alleged that RedotPay diverted more than 470,000 users from Binance Card by allowing users to fund RedotPay stablecoin payment cards with Binance Pay outside the agreed terms.
Binance Holdings affiliates Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore filed a petition against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao. Chaintecs filed a related lawsuit in Singapore, where a hearing is scheduled for Friday.
The plaintiffs estimated damages at $472.8 million, citing a lifetime customer value of $925 for each allegedly diverted user.
A Binance spokesperson told Cointelegraph: “While Binance does not comment on ongoing litigation, where necessary we will use courts and other forums to pursue what is right.”
RedotPay says proceedings will not affect operations
RedotPay said the proceedings will not affect its day-to-day operations and that it will continue defending itself through the legal process.
“We are confident in our legal position, and are vigorously defending all claims. As the matter is currently before the court, RedotPay will not be commenting further on the allegations, the ongoing proceedings, or matters that will be addressed through the judicial process,” the company said in a statement on its website.
Related: Apple faces lawsuit over alleged $1.8M Bitcoin wallet app losses
The company also highlighted its recent growth, saying its user base increased by more than 33% over the past six months. RedotPay said it generates about $180 million in annualized revenue and $14 billion in annualized payment volume.
RedotPay announced its Binance Pay partnership in December 2023, saying the integration allowed Binance Pay users to make direct deposits to RedotPay cards. The links included in its announcement on X point to unavailable pages.
Source: RedotPay
Binance later announced that it would end support for Binance Pay features on the RedotPay platform effective April 3, 2026, as part of a review of its merchant partners. The page no longer loads, although it remains searchable on Binance’s website.
Magazine: Binance phishes its own staff monthly, India censors BitChat code: Asia Express
