How a crypto startup quietly siphoned 470,000 Binance users to build a $4 billion card empire

Binance-affiliated entities filed a Hong Kong petition against RedotPay's founders, alleging the payment startup used its partnership with Binance to divert more than 470,000 Binance Card customers into its own competing stablecoin card.

As Bloomberg News reported, Binance claims $472.8 million in losses, built on an estimated $925 lifetime value per customer, and says RedotPay received roughly $304 million in user funds routed through Binance Pay.

RedotPay denies the allegations and says the case will not affect its daily operations.

RedotPay says it now serves more than 8 million users and processes roughly $14 billion in annualized payment volume, a scale that reportedly has the company considering an IPO at a valuation above $4 billion.

Binance alleges that scale came partly from customers RedotPay was never supposed to have.
The value of a stablecoin product lies in whatever app the customer opens every day to spend, top up, or check a balance.

That app captures conversion fees, card-spending revenue, merchant data, and the chance to sell the customer something else later.

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