Binance sues RedotPay over 470,000 diverted card users

Binance-affiliated entities filed a petition in Hong Kong accusing RedotPay’s founders of diverting more than 470,000 Binance Card users to a RedotPay stablecoin card and seeking $472.8 million in damages.

The petition applies an estimated lifetime value of $925 per customer to reach the $472.8 million figure and alleges roughly $304 million in user funds were routed through Binance Pay into channels controlled by RedotPay.

RedotPay rejects the allegations and maintains the case will not affect daily operations. The company reports it serves more than 8 million users and processes about $14 billion in annualized payment volume. Those figures have been linked to the company’s reported consideration of an initial public offering at a valuation above $4 billion.

The dispute centers on who controls the customer relationship created through payment rails and card services. The petition alleges a top-up route tied to Binance Pay was used to build a direct consumer connection for RedotPay’s card. A stablecoin card captures conversion fees, card-spending revenue, merchant data and opportunities to offer additional services to users.

The case reflects overlaps among wallets, exchanges, card issuers and networks. Card networks and payment platforms have added wallet services, card issuing and token infrastructure that let apps convert and spend stablecoins without routing funds back through an exchange.

Visa supports more than 130 stablecoin-linked card programs across over 50 countries and expects that number to roughly double this year. Bridge-enabled Visa cards are live in 18 countries with plans to reach more than 100. Mastercard agreed to acquire a stablecoin infrastructure firm for up to $1.8 billion. Stripe offers stablecoin wallets, card issuing and token infrastructure through products including Bridge and Privy.

Those commercial arrangements affect where fees, reserve income and user data are captured. For users, a top-up route can stop working if a partnership ends, rewards or fee structures can change, and cards can be migrated or paused with short notice. Stablecoins remain transferable on-chain, but everyday spending and customer support often depend on private agreements among exchanges, wallets, issuers and card networks.

The Hong Kong petition asks the court to decide whether using a partner’s payment rail to reach customers can be treated as a route for customer acquisition or whether the partner retains rights over users funded through its systems.