RedotPay is facing a lawsuit seeking around $473 million in damages from Binance-affiliated companies.

The case centers on allegations that the Hong Kong-based stablecoin payments firm diverted more than 470,000 users from Binance Card by allowing them to fund the firm’s payment cards through Binance Pay outside the terms of an existing commercial agreement.

Bloomberg reported the lawsuit on Wednesday and cited a Hong Kong court filing which revealed the exchange’s affiliates Nest Trading, Distributed Technologies Ltd., and Chaintecs Consulting Singapore brought the case against RedotPay’s co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao.

Agreement Breach

The plaintiffs calculated the claimed damages using a lifetime customer value of $925 for each allegedly diverted user. Chaintecs has also brought a related case in Singapore, the hearing of which is scheduled for Friday.

The dispute comes months after Binance’s decision to end its support for the company. In an update, the exchange previously said that Binance Pay features and functionality on the RedotPay platform were discontinued from April 3, 2026, as part of its review of merchant partners.

Meanwhile, the Hong Kong-based firm has been expanding its presence in crypto payments and preparing for a possible public listing. It was in talks to raise as much as $150 million, with the potential funding coming as it targets a US IPO that could value the business above $4 billion. JPMorgan Chase, Goldman Sachs and Jefferies Financial Group were advising the company on a potential New York listing that could come as early as this year.

It had raised $194 million in two funding rounds back in September and December 2025. Coinbase Ventures, Circle Ventures and Blockchain Capital were among the investors. RedotPay has also posted significant growth in transaction activity. Its annualized total payment volume crossed $10 billion in December 2025, while its full-year TPV increased 300% year over year.

User Growth and Expansion

The RedotPay dispute comes as Binance continues to expand its reach across the broader financial market. In July, the exchange said its registered user base had climbed to 323 million across more than 100 countries, increasing 7% in the first half of 2026.

Institutional users also surged by 9% during the same period. Its cumulative trading volume reached $156 trillion after $11.4 trillion was added in the first six months.

Beyond crypto, its traditional finance products have generated more than $80 billion in monthly trading volume since March. Its stock trading service, which was launched in June, crossed $1 billion in assets under management within a month.

Source: CryptoPotato