According the Cointelegraph, Binance-affiliated companies have sued RedotPay's founders, alleging diversion of over 470.000 Binance Card users worth USD 473 million.
Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore, described as Binance Holdings affiliates, have filed a petition in Hong Kong against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. The filing alleges that RedotPay, a Hong Kong-based cryptocurrency payments company, breached a commercial agreement with Binance by allowing users to fund RedotPay stablecoin cards through Binance Pay outside the terms of that agreement, resulting in the diversion of more than 470.000 users from Binance Card.
According to the filing, cited by Bloomberg, the plaintiffs are seeking damages of USD 472.8 million. The estimate is based on a lifetime customer value of USD 925 per user allegedly diverted from Binance Card. The plaintiffs further allege that the diverted user base contributed to RedotPay's valuation as the company considers a potential initial public offering.
Chaintecs Consulting Singapore has also filed a related lawsuit in Singapore, where a hearing has been scheduled for Friday, 7 August 2026. A Binance spokesperson said the company does not comment on ongoing litigation but would use courts and other forums to pursue what it considers appropriate.
RedotPay rejects allegations, cites continued growth
RedotPay has stated it is defending the proceedings and rejected the claims against the company and its co-founders as unfounded. In a statement on its website, the company said it is confident in its legal position and will not comment further on the allegations while the matter is before the court. RedotPay added that the litigation will not affect its day-to-day operations.
The company also disclosed growth figures alongside its statement, reporting a global user base of more than eight million customers, an increase of over 33% over the past six months. RedotPay said it generates approximately USD 180 million in annualised revenue and USD 14 billion in annualised payment volume.
RedotPay announced its Binance Pay partnership in December 2023, stating the integration allowed Binance Pay users to make direct deposits to RedotPay cards. Binance later announced it would end support for Binance Pay features on the RedotPay platform effective 3 April 2026, as part of a review of its merchant partners.
The dispute comes amid competition among cryptocurrency payment providers to expand stablecoin-based card and spending products, an area in which both companies have positioned their offerings. The outcome of the Hong Kong and Singapore proceedings may have implications for how commercial agreements between crypto exchanges and payment card issuers are structured going forward.
