Binance affiliates are suing the founders of crypto payments firm RedotPay for nearly $473 million, alleging a "fraudulent scheme" diverted over 470,000 users from Binance Card. The lawsuit claims this was done by allowing unauthorized card top-ups via Binance Pay. RedotPay calls the allegations "unfounded" and is defending itself while stating operations are unaffected.
Binance lawsuit against RedotPay
- ▪The lawsuit names RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao as defendants
- ▪The lawsuit, filed in a Hong Kong court, seeks nearly $473 million in damages
- ▪The plaintiffs are Binance affiliates Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore
- ▪Binance-affiliated companies have sued the founders of Hong Kong-based crypto payments firm RedotPay
User diversion allegations
- ▪The damages estimate of $472.8 million is based on a lifetime customer value of $925 per allegedly diverted user
- ▪Binance alleges RedotPay diverted more than 470,000 users from Binance Card in breach of their commercial agreement
- ▪Binance claims the user diversion contributed to RedotPay's valuation as the company considers a potential initial public offering
- ▪The alleged "fraudulent scheme" involved allowing users to fund RedotPay cards with Binance Pay outside of agreed terms
RedotPay legal defense
- ▪RedotPay stated it is "strenuously defending the proceedings" and has rejected the allegations as "unfounded."
- ▪A RedotPay spokesperson said the company will respond through the appropriate legal process and will not comment further on the matter
RedotPay operational continuity
- ▪RedotPay stated the lawsuit will not affect its day-to-day operations
- ▪The company reports having a global user base of over 8 million customers and generating $180 million in annualized revenue
- ▪RedotPay was recently named on CNBC's World's Top Fintech Companies 2026 list in the Payments category
Binance-RedotPay partnership history
- ▪The legal dispute occurs as crypto payments companies compete to expand stablecoin-based spending products
- ▪RedotPay announced a partnership with Binance Pay in December 2023 to allow direct deposits to its cards
- ▪Binance ended support for Binance Pay features on the RedotPay platform effective April 3, 2026, as part of a merchant partner review
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