Key facts
- Binance-affiliated companies Nest Trading, Distributed Technologies, and Chaintecs Consulting Singapore are suing RedotPay and its co-founders.
- The lawsuit alleges RedotPay diverted over 470,000 users from Binance Card and improperly used Binance Pay funds for card top-ups.
- Plaintiffs are seeking damages estimated at $472.8 million, based on a lifetime customer value of $925 per user.
- RedotPay has rejected the allegations as unfounded and stated it will vigorously defend itself.
- A related lawsuit has been filed in Singapore by Chaintecs, with a hearing scheduled for Friday.
Binance-affiliated companies have filed a lawsuit against the founders of Hong Kong-based cryptocurrency payments firm RedotPay, alleging they diverted over 470,000 users from Binance Card and improperly used Binance Pay funds for card top-ups, causing nearly $473 million in losses. The plaintiffs, including Nest Trading, Distributed Technologies, and Chaintecs Consulting Singapore, are seeking damages estimated at $472.8 million, based on an estimated lifetime customer value of $925 per user.
RedotPay, which calls itself the world's largest stablecoin payment card issuer and is planning a U.S. IPO of over $1 billion, has rejected the claims as unfounded and vowed to defend itself "vigorously." The company stated that the legal proceedings will not impact its operations and that it is confident in its legal position.
A related lawsuit has also been filed in Singapore by Chaintecs, with a hearing scheduled for Friday. Binance stated that while it does not comment on ongoing litigation, it will use courts and other forums to pursue what is right when necessary. The commercial agreement between Binance and RedotPay, which began in November 2023, ended in April 2026.