Three companies affiliated with Binance have filed a lawsuit in Hong Kong against the co-founders of RedotPay, seeking $472.8 million in damages over allegations that the payments firm diverted more than 470,000 Binance users to its own competing stablecoin card network.

Nest Trading Ltd., DistributedTechnologies Ltd., and Chaintecs Consulting Singapore Pte are named as plaintiffs in the proceeding. The defendants include RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. The claims remain allegations and have not been tested in court.

Alleged Breach of Commercial Agreement

The Hong Kong petition alleges that RedotPay's founders breached a commercial agreement signed in March 2025. Under the partnership, RedotPay was granted access to Binance's user base while Binance Pay was extended across RedotPay's payment network.

Permitted activities under the agreement included crypto-to-fiat conversion, transfers, and the purchase of RedotPay-branded products. Binance contends that the agreement explicitly excluded the direct funding of RedotPay cards through Binance Pay.

The plaintiffs allege that RedotPay nonetheless allowed and encouraged customers to use Binance Pay balances for card top-ups, without segregating those funds from prohibited payment activity. Approximately $304 million in funds allegedly flowed from Binance Pay users into the RedotPay ecosystem through this arrangement.

Binance assigned an estimated lifetime value of $925 to each allegedly diverted customer, resulting in the $472.8 million damages claim. This figure represents the plaintiffs' estimate rather than a confirmed financial loss. The damages model underscores how major exchanges increasingly treat user relationships as proprietary assets with quantifiable long-term revenue potential, similar to traditional banking and fintech metrics.

Binance Discontinued Payment Support in April

Binance discovered the disputed activity in March 2026 and terminated Binance Pay support on RedotPay effective April 3. The exchange publicly characterized the move as part of a broader review of its merchant partners.

A Binance spokesperson stated that the company would pursue its position through courts and other forums when necessary. Chaintecs has also initiated related proceedings against RedotPay entities in Singapore, with an initial hearing scheduled for August 7.

The dispute comes amid rapid growth in the stablecoin-linked payment card sector. RedotPay accounted for the majority of tracked volume when monthly crypto card spending reached a record $650 million. Separately, Binance Pay has processed more than $280 billion as cryptocurrency payments have expanded beyond trading. Crypto-card programs have become a key battleground for exchanges and payment firms seeking to convert holders of digital assets into everyday transactors, making partnership boundaries increasingly consequential.

RedotPay Denies Allegations Amid IPO Preparations

RedotPay rejected the allegations and stated it would vigorously defend the proceedings. The company said the cases would not affect its daily operations and declined to comment further while the matter remains before the courts.

RedotPay also reported record onchain spending by its users during July and stated that Paymentscan continued to rank it as the largest tracked crypto card programme.

The lawsuit emerges as RedotPay seeks up to $150 million in pre-IPO financing ahead of a potential US listing at a valuation exceeding $4 billion. The company has grown to more than eight million users following a $107 million raise in its latest major funding round. Major litigation filed weeks before a funding round could complicate investor diligence and valuation negotiations, as prospective backers assess legal exposure alongside growth metrics.

The Singapore proceedings are scheduled for their first hearing on August 7.