Binance Affiliates Sue RedotPay Founders for $470-473 Million Over Alleged User Diversion

Binance affiliates Nest Trading, DistributedTechnologies, and Chaintecs Consulting are suing RedotPay founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao in Hong Kong and Singapore. The plaintiffs seek $472.8 million in damages, alleging RedotPay breached a March 2025 agreement by diverting over 470,000 users from Binance Card. Binance claims RedotPay improperly allowed Binance Pay funds to fund RedotPay cards. The dispute arises as RedotPay prepares for a US IPO targeting a $4 billion valuation.

Binance lawsuit against RedotPay

• ▪Binance Holdings affiliates Nest Trading Ltd., DistributedTechnologies Ltd., and Chaintecs Consulting Singapore Pte filed a lawsuit in Hong Kong against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao.
• ▪Binance affiliate Chaintecs Consulting Singapore Pte filed a parallel lawsuit in Singapore against RedotPay entities, with a court hearing scheduled for August 7, 2026.

User diversion allegations

• ▪Binance affiliates allege that RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao diverted more than 470,000 users from Binance Card to RedotPay's competing payment card product.
• ▪Binance affiliates allege that RedotPay's unauthorized user diversion contributed to RedotPay's valuation as the company prepares for a potential initial public offering.

Binance Pay integration dispute

• ▪Binance affiliates allege that RedotPay breached their March 2025 commercial agreement by allowing and encouraging users to fund RedotPay stablecoin payment cards with Binance Pay without segregation.
• ▪Under the March 2025 agreement, Binance customers were permitted to use RedotPay only for crypto-to-fiat conversion, in-app transfers, or purchasing RedotPay-branded goods.
• ▪Binance discovered the alleged unauthorized card top-ups in March 2026 and subsequently terminated Binance Pay features on RedotPay effective April 3, 2026.

Damages claim calculation

• ▪Binance affiliates allege that the commercial partnership funneled approximately $304 million in user funds from Binance Pay into RedotPay's ecosystem.
• ▪Binance affiliates are seeking $472.8 million in damages, calculating a lifetime customer value of $925 for each of the 470,000 allegedly diverted users.

RedotPay IPO valuation

• ▪RedotPay reached a private valuation of over $1 billion in late 2025, raising $107 million in a Series B round from investors including Accel, Blockchain Capital, Circle Ventures, Coinbase Ventures, and Galaxy Ventures.
• ▪The lawsuit arrives as RedotPay prepares for a potential US initial public offering that could value the company at over $4 billion and raise more than $1 billion.