Binance has launched a major legal battle against crypto payments firm RedotPay, accusing the company of violating a commercial agreement and diverting hundreds of thousands of users. The exchange’s affiliated companies are seeking $472.8 million in damages, arguing that the alleged customer migration significantly reduced the long-term value of its Binance Card business. RedotPay disputes every allegation and says the lawsuit will not disrupt its operations or expansion plans.

Binance Claims Agreement Breach

According to Bloomberg, Binance affiliates Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore filed the Hong Kong lawsuit against RedotPay founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao.

The companies allege that RedotPay diverted more than 470,000 Binance Card users through Binance Pay outside the agreed commercial terms. Binance calculated damages using an estimated lifetime customer value of $925 per user. In addition to the Hong Kong case, Chaintecs has also filed related legal proceedings in Singapore, where a hearing is scheduled for Friday. The dispute puts a focus on how crypto payment partnerships are structured and enforced, especially when user access and card-linked services are part of the commercial arrangement.

RedotPay Defends Business Strategy

RedotPay rejected the allegations and said it will contest the claims in court. The company also said the legal proceedings will not affect daily operations.

RedotPay said it has surpassed eight million users worldwide and disclosed $180 million in annualized revenue and about $14 billion in annualized payment volume. The company also said it continues to evaluate a potential U.S. public listing. The Hong Kong and Singapore cases now add a legal backdrop to a business that is still expanding and seeking broader market access.