Lawsuit claims crypto payments firm breached commercial agreement tied to Binance Card.
Court filing centres on alleged misuse of Binance Pay under a business agreement
Photo Credit: X/ReddotPay
The Binance-affiliated companies have filed lawsuits against the Hong Kong-based crypto payments firm, RedotPay, accusing the firm of diverting over 470,000 customers from Binance Card in violation of their commercial agreement. The lawsuit seeks damages worth almost $473 million (roughly Rs. 4,496 crore), claiming that the behaviour played a part in making RedotPay grow as it moves to list itself in an initial public offering (IPO), Bloomberg reported on Wednesday, citing a court filing from Hong Kong that it had seen. RedotPay said that it was defending the proceedings and rejecting “unfounded allegations.”
The legal dispute arises amid stiff competition between crypto payment firms in developing stablecoin-based spend solutions, as RedotPay reports a fast-growing business and 8 million users worldwide. As per the report, the exchange accused RedotPay of diverting customers from the Binance Card by allowing customers to load RedotPay stablecoin payment cards via Binance Pay, against the terms of a business agreement.
The Binance Holdings-linked companies Nest Trading, Distributed Technologies, and Chaintecs Consulting Singapore are said to have filed a suit against the co-founders of RedotPay, Gao Zhangpeng, Chan Wa Choi, and Yao Chao. In connection with the case, Chaintecs filed a lawsuit in Singapore, which is set to take place on Friday.
RedotPay assured that the lawsuit will not affect its daily activities and that it will still defend itself legally. “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.
RedotPay first made this announcement regarding its partnership with Binance Pay in December 2023, stating that this collaboration enabled Binance Pay users to make direct deposits into their RedotPay cards. Binance also stated that it had ceased offering Binance Pay functionality via the RedotPay platform as of April 3, 2026, following an evaluation of its merchants.
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