Binance affiliates sue RedotPay founders for $473 million over alleged user diversion scheme

Aug 5, 2026

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.