According to a Bloomberg report dated August 5, court documents filed in Hong Kong show that three Binance‑affiliated entities — Nest Trading, Distributed Technologies and Chaintecs Consulting Singapore — have launched legal action in Hong Kong against three co‑founders of stablecoin card issuer RedotPay, seeking damages of USD 472.8 million. The case lays bare a major dispute over cooperation and competition within the crypto‑payments sector.
Core allegations set out in the writ state that RedotPay is alleged to have breached their commercial cooperation agreement. It is accused of improperly leveraging Binance Pay channels to fund its own stablecoin card offering, diverting more than 470,000 Binance Card users to RedotPay’s competing payment‑card business and poaching Binance Card’s existing user base.
The plaintiff calculated its claimed losses by applying a lifetime‑value (LTV) of USD 925 per user to the 470,000 diverted accounts, arriving at the USD 472.8‑million claim. This is not based on one‑off transaction losses, but on the long‑term commercial value allegedly lost from the transferred user cohort.
Background to the case shows the parties previously maintained a commercial partnership. The agreement restricted Binance Pay to use‑cases such as currency conversion and in‑app transfers, and prohibited direct top‑ups for RedotPay stablecoin cards. Binance‑linked entities allege RedotPay bypassed contractual restrictions to enable such top‑ups, strategically acquiring large volumes of Binance Card users. Binance terminated the relevant partnership APIs in April 2026.
The lawsuit comes at a critical juncture as RedotPay pursues its US IPO plans. The firm has expanded rapidly in recent years, operating across more than one hundred global markets. Parallel related proceedings have also been initiated by Chaintecs Consulting Singapore in Singapore, with court hearing dates already scheduled.
RedotPay has publicly rejected all allegations and stated it will mount a full legal defence through judicial proceedings. The company emphasised that the litigation will not disrupt its day‑to‑day operations or expansion roadmap.
At its heart, the dispute touches on fundamental questions for the crypto‑payments ecosystem: where to draw the line when crypto exchanges open payment infrastructure to external partners, and how ownership of platform‑originated users should be defined. This ruling may serve as a reference point for future commercial‑cooperation models in the crypto‑card space.
Hong Kong’s courts have yet to announce an official hearing date. Further developments regarding evidence submission and court proceedings remain pending.