Binance, the renowned crypto exchange, has sued RedotPay, a crypto payments entity in Hong Kong. Binance-affiliated platforms have started legal action against RedotPay for allegedly diverting a large number of users. As per the reports, the lawsuit seeks $472.8M in damages caused by RedotPay’s alleged infringement of a former agreement. Specifically, the development comes after the loss of over 470,000 Binance users.

Binance Files $472.8M Lawsuit Against RedotPay for Allegedly Diverting 470,000 Clients

The Binance lawsuit against RedotPay is seeking up to $472.8M in damages following the alleged diversion of its 470,000 users. The lawsuit is built on the claim that the executives of RedotPay orchestrated a strategy to divert users from Binance-related services to their platform. However, RedotPay has refuted the allegations, saying that the platform will ensure its defense via the judicial procedure. The dispute denotes one of the leading legal battles concerning cryptocurrency payments throughout 2026.

In line with the reports, Binance-affiliated entities, including Chaintecs Consulting Singapore Pte., Distributed Technologies Ltd., and Nest Trading Ltd., sued RedotPay co-founders Chan Wa Choi, Yao Chao, and Gao Zhangpeng. The plaintiffs accuse the defendants of breaching the terms of a contract that they signed a year ago by diverting clients to the competing crypto payment and card services of RedotPay.

Apart from that, the lawsuit claims that RedotPay’s diversion orchestration led to the migration of over 470,000 Binance consumers. The Binance-affiliated firms characterize these actions as included in a fraudulent scheme to shift users from Binance-associated products while facilitating the swiftly expanding payments network of RedotPay. Along with the Hong Kong proceedings, a legal action has also been launched by Chaintecs Consulting Singapore against RedotPay-linked entities. A hearing in the respective case is set to take place on Friday, signifying that the legal dispute currently spans diverse jurisdictions.

RedotPay Denies Allegations, Reaffirms Commitment to Stablecoin Payment Expansion

According to the reports, RedotPay has denied Binance’s allegations, stressing that the lawsuit will not impact services or business operations thereof. Additionally, the firm reasserted its long-term objective of broadening worldwide financial access via stablecoin-driven payment solutions. Overall, the outcome of this lawsuit could significantly impact both entities and may contribute to the ongoing competition within the swiftly growing stablecoin-led crypto payments market.