Binance files $473 million lawsuit against RedotPay
Crypto giant alleges redirection of 470,000 users in partnership dispute.
1Lawsuit basis
Binance-affiliated companies filed a $473 million lawsuit against RedotPay and its founders in Hong Kong. The exchange alleges RedotPay redirected over 470,000 users to its own product, violating their partnership agreement. Plaintiffs include Nest Trading Ltd. and other Binance subsidiaries. The first hearing is scheduled for August 7 in Hong Kong courts.
2Binance's claims
Binance accuses RedotPay of using Binance Pay to fund their own cards in breach of contract. Alleged violations date back to March 2026. The company calculates lifetime customer value at $925, demanding $472.8 million in compensation. Binance also claims RedotPay raised $304 million in user funds through this partnership.
3RedotPay's defense
RedotPay officials firmly denied Binance's allegations, vowing to defend their position in court. They stated the lawsuit won't affect daily operations. The company is preparing for a potential IPO with $4 billion valuation while negotiating new funding rounds, according to Bloomberg reports.
4Partnership history
The initial agreement between both companies was signed in November 2023 but terminated within six months due to Binance's complaints. A new agreement in March 2025 required separate custody of Binance Pay funds and usage restrictions, which Binance claims were violated.
5Financial dimensions
Binance values each lost customer at $925, demanding $472.8 million for 470,000 allegedly redirected users. Meanwhile, RedotPay plans to go public with $4 billion valuation and seeks $150 million in new investments. The lawsuit timing coincides with these critical financial maneuvers.
6Legal proceedings
The case will be heard in Hong Kong courts, with parallel legal actions in Singapore. RedotPay founders Gao Zhangpen, Chan Wa Choi and Yao Cho are named defendants. Binance lawyers argue the contract breaches were intentional and damaged commercial reputation.
7Industry implications
Lawsuits of this magnitude are rare in crypto. The outcome could set new standards for partnership agreements between crypto businesses. It may prompt reevaluation of regulations concerning user data and payment system usage across platforms.
8Conclusions and projections
This case demonstrates intensifying competition among crypto platforms. Binance's move serves as a warning to industry players. How the lawsuit affects RedotPay's IPO plans remains a key investor concern. The verdict could establish important precedents for crypto business practices worldwide.
Original article: INCRYPTED — Binance, RedotPay'e 473 milyon dolarlık dava açtı