Binance is taking RedotPay to court in Hong Kong, claiming the crypto payments giant poached over 470,000 users and cost the exchange $472.8 million in the process. Three Binance-linked entities, Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore, filed the lawsuit against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao, alleging they breached an existing business agreement by diverting customers to their own platform.
The case pits two heavyweight crypto payments players against each other. Binance, the world's largest exchange by trading volume, is accusing RedotPay, which operates the biggest crypto card service linking to Visa and Mastercard networks, of deliberately steering away Binance users. RedotPay has denied the allegations and says it will defend itself through proper legal channels.
The Numbers Behind the Dispute
The scale of the alleged diversion is staggering. More than 470,000 users left Binance for RedotPay's ecosystem, according to the lawsuit. Binance calculates this exodus cost the exchange $472.8 million in lost revenue and opportunity. That figure represents real money from transaction fees, trading volumes, and customer lifetime value that Binance says it will never recover.
The court battle extends beyond Hong Kong. Chaintecs Consulting Singapore has filed a related lawsuit against RedotPay affiliates in the city-state, with a hearing scheduled for Friday. These parallel legal actions suggest Binance is pressing its case across multiple jurisdictions where both parties operate.
Market Reaction and What Comes Next
RedotPay's response remains measured so far. The company denies the allegations and has signaled it will challenge them in court rather than settle quietly. The outcome could reshape how crypto platforms handle user agreements and customer retention clauses. If Binance wins, it may force stricter non-poaching terms across the industry. If RedotPay prevails, it could signal that users are free to migrate between platforms regardless of prior business relationships.
The case also highlights growing tensions in the crypto payments space, where competition for users has become cutthroat. Mastercard and other traditional finance players are already moving into stablecoin payments verification, adding pressure on native crypto platforms to defend their turf. This lawsuit may just be the opening skirmish in a larger battle over who controls the infrastructure of crypto commerce.
This article provides factual information about an ongoing legal dispute and is not financial or legal advice.