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

What happened

Binance‑affiliated entities filed a Hong Kong petition accusing RedotPay’s founders of using their Binance partnership to move more than 470,000 Binance Card users onto RedotPay’s competing stablecoin card, building a $4 billion card business.

Confirmed

Global impact / market context

If true, the alleged diversion could shrink Binance’s card user base, lower its transaction fees, and give RedotPay a large, revenue‑generating customer pool, affecting competition in crypto‑linked payment services.

Analyst inference

Crypto‑payment cards are a fast‑growing segment, and any shift of hundreds of thousands of users can change market share, influence investor confidence in Binance’s ecosystem, and affect valuations of related fintech firms.

Analyst inference

What to watch

1. Outcome of the Hong Kong petition – a court ruling could confirm or reject the alleged misuse, directly impacting RedotPay’s ability to retain the diverted users. Proposed
2. Binance’s response – whether Binance tightens partnership rules or launches new incentives could affect future user migration and its card revenue. Analyst inference
3. Regulatory scrutiny of crypto‑linked payment cards in Hong Kong and other jurisdictions, which may lead to new compliance requirements for both firms. Analyst inference

Evidence

• cryptoslate.com