Crypto
Home›Crypto›Regulation›Binance-linked entities sue RedotPay over diversion of…
Binance-linked entities sue RedotPay over diversion of Binance Card users
The petition alleges RedotPay routed about $304 million in user funds through Binance Pay and used the partnership to build its own stablecoin card, while RedotPay denies the claims.
Binance-affiliated entities have filed a petition in Hong Kong against RedotPay founders, alleging the payments startup used its Binance partnership to siphon more than 470,000 Binance Card customers into RedotPay's competing stablecoin card offering, according to CryptoSlate.
Binance claims the alleged setup resulted in $472.8 million in losses, based on an estimated $925 lifetime value per customer, and it also says roughly $304 million in user funds were routed through Binance Pay.
RedotPay denies the allegations and says the case will not affect its day-to-day operations, while the company says it now serves more than 8 million users and processes about $14 billion in annualized payment volume.
CryptoSlate notes that the dispute highlights how stablecoin revenue depends on where users spend, top up, or check balances, and how card and app distribution can create competition for reserve economics and conversion fees.