Binance has filed a lawsuit against crypto card provider RedotPay, alleging that the company breached their commercial agreement by diverting more than 470,000 users. The exchange claims this caused losses of approximately $472.8 million, arguing that the diverted users represented significant commercial value. RedotPay has rejected the allegations and stated it will defend itself through legal proceedings. A related lawsuit against RedotPay affiliates is scheduled for a hearing on August 7. The case raises questions about customer ownership in crypto payments and could affect RedotPay’s expansion plans as it pursues a valuation of $4 billion.
Binance has sued crypto card provider RedotPay, alleging the company diverted hundreds of thousands of users in breach of their commercial agreement. According to the lawsuit, RedotPay redirected more than 470,000 Binance users, resulting in alleged losses of $472.8 million.
Binance argues that the diverted users generated significant commercial value, making the dispute more than a contractual disagreement. The case raises broader questions about who owns customers in cryptocurrency payments and how the competitive market operates.
RedotPay has rejected the allegations, saying it will defend itself through the appropriate legal process. The dispute extends beyond Hong Kong, with a related lawsuit against affiliates of RedotPay scheduled for a hearing this Friday, August 7.
As the legal battle plays out, its result could affect plans for RedotPay to expand and reshape competition in the rapidly growing crypto payments sector. The partnership initially allowed Binance users to access selected RedotPay services while requiring payment flows to remain operationally separate.
Binance now alleges those safeguards broke down after Binance Pay funds were used to top up RedotPay Cards, making contractual execution central to the dispute. The segregation of funds remains a core safeguard in partnerships for crypto payments.
RedotPay is pursuing a reported valuation of $4 billion, heightening scrutiny on controls supporting expansion. The outcomes could shape how future partnerships define customer access, payment flows, and compliance responsibilities.
The disputed user relationships illustrate how payment ecosystems derive value from recurring activity rather than simple account growth. As competition intensifies, providers are likely to invest more in expanding ecosystems rather than focusing on standalone products.
