Binance Sues RedotPay Founders...

Binance Files $472.8 Million Suit in Hong Kong

Binance affiliates are suing the founders of Hong Kong-based crypto payments firm @RedotPay for allegedly diverting hundreds of thousands of customers to a competing product in a "fraudulent scheme," claiming nearly half a billion dollars in losses.

The Binance Holdings-affiliated entities Nest Trading Ltd., Distributed Technologies Ltd. and Chaintecs Consulting Singapore Pte filed a petition in Hong Kong alleging that RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao violated the terms of an agreement signed last year, according to a court document obtained by Bloomberg News.

Under the original March 2025 agreement, RedotPay was granted access to @Binance's user base, and Binance customers could use RedotPay only for crypto-to-fiat conversion, in-app transfers, or the purchase of RedotPay-branded goods.

How the Alleged Diversion Worked

The dispute centres on RedotPay's alleged failure to segregate Binance Pay funds, allowing them to be used for prohibited activities like card top-ups, contrary to their agreement. According to the filing, Binance discovered in March 2026 that the RedotPay group had been allowing and encouraging Binance Pay funds to be used without segregation for card top-ups on the RedotPay Card. The exchange puts the number of migrated users at more than 470,000 and, valuing each at $925 in lifetime revenue, is asking the court for $472.8 million.

Binance also alleges the arrangement funnelled roughly $304 million in user funds from Binance Pay into RedotPay's ecosystem.

The legal action comes months after Binance severed ties with the company, terminating all Binance Pay functionalities on RedotPay effective April 3, 2026. RedotPay has denied the allegations.

RedotPay had positioned itself as a significant player in the stablecoin payments space ahead of the dispute. The company says it now serves more than 6 million users globally, processes over $10 billion in annualized payment volume, and generates more than $150 million in annualized revenue. Founded in 2023, RedotPay offers stablecoin-based cards, wallets, and payout services aimed at cutting the cost and settlement time of cross-border payments, particularly in emerging markets.

Sources:
Bloomberg: Binance Claims RedotPay Diverted Users in $470 Million Lawsuit
Crypto Times: Binance Sues RedotPay for $472M
Crypto Briefing: Binance Claims RedotPay Diverted Users in $470M Lawsuit