Binance has filed a $472.8 million damages suit in Hong Kong against the co-founders of RedotPay, alleging they breached a 2025 partnership agreement by fraudulently diverting more than 470,000 users from Binance's payment ecosystem into their own stablecoin card network.
The complaint centers on RedotPay's use of its Binance Pay integration to redirect retail volume into a proprietary card service rather than expanding the joint payment network. The $472.8 million figure is based on a valuation of approximately $925 per user diverted, according to the filing.
Binance Pay is the exchange's core payments product, designed to let users spend crypto across merchant networks and payment rails. RedotPay, a fintech startup, had secured integration rights to offer Binance Pay features within its own card product under the March 2025 agreement. The partnership was structured to cross-promote both platforms and expand adoption in Southeast Asia and beyond. RedotPay was preparing for a public listing at the time the alleged diversion began, according to court documents.
The suit alleges that RedotPay deliberately concealed the scale of user migration into its proprietary card offering while presenting growth metrics to Binance that obscured the shift away from Binance Pay's native channels. Binance claims it relied on those representations when deciding to fund deeper integration and marketing support for the partnership.
The Hong Kong jurisdiction reflects both parties' operational footprint in the territory. Binance maintains significant infrastructure and compliance operations in the city, while RedotPay had established its regional headquarters there. Hong Kong courts have become a frequent venue for large crypto and fintech disputes over the past three years.
RedotPay's founders have not yet responded to the suit. The company did not immediately reply to requests for comment on the allegations.
Binance's damages claim of $472.8 million is one of the largest partnership-breach suits filed by an exchange against a third-party integrator since 2024. The per-user valuation of $925 aligns with acquisition cost multiples in the payments space, where platforms typically value retained users at $800 to $1,200 depending on transaction volume and geographic market. If the 470,000 users were active and generating transaction fees, the lost revenue stream to Binance could exceed the claimed damages over a multi-year period.
The filing will turn on whether RedotPay deliberately concealed user diversion or whether the migration was an expected outcome of offering a superior card product. The document to watch is RedotPay's response, which must address Binance's claim that internal communications show knowledge of the scheme and deliberate misrepresentation of user retention to Binance executives.
