Binance-Affiliated Firms Sue RedotPay Founders for $472.8 Million

Binance-Affiliated Companies File $472.8 Million Lawsuit Against RedotPay Founders – Dispute Centers on Card Top-Ups and User Ownership

Key Takeaways

• Binance-affiliated companies have filed a $472.8 million lawsuit in Hong Kong against RedotPay’s three co-founders.
• The dispute focuses on RedotPay card top-ups funded from Binance accounts, which Binance says were not permitted.
• Binance claims more than 470,000 users were diverted, valuing each at $925 in lifetime worth.
• RedotPay raised $40 million and later $107 million while reporting rapid user growth tied in part to its Binance relationship.
• Separate legal proceedings are under way in Hong Kong and Singapore.

Hong Kong Lawsuit Targets RedotPay Founders Over Alleged User Diversion

Binance-affiliated entities Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore have filed a lawsuit in Hong Kong against RedotPay’s three co-founders, Gao Zhangpeng, Chan Wa Choi and Yao Chao. The claim seeks $472.8 million in damages.

According to the filing cited in reporting, Binance alleges that users topped up RedotPay cards with funds from Binance accounts, despite an agreement that required both firms to keep their respective channels and balances separate. Binance characterizes the practice as prohibited and argues that it led to the diversion of users from Binance’s own card ecosystem.

In addition to the Hong Kong proceedings, a separate case in Singapore names RedotPay affiliates. A hearing in that jurisdiction is scheduled for Friday. RedotPay’s public response states that the legal action has no impact on its day to day operations and that the company is confident in its legal position and is defending all claims.

Investor Pitch Highlighted Binance Integration in 2024

The lawsuit draws attention to RedotPay’s 2024 Series A pitch materials reviewed by Bloomberg. Those materials reportedly presented a tie-up with Binance as a mechanism to accelerate user adoption. The pitch deck flagged direct deposits to RedotPay Card from Binance Pay.

Binance now refers to that same practice as banned in its petition. While the investor presentation referenced the Binance connection, RedotPay’s public Series A announcement did not mention Binance. The difference between private investor materials and public communications has become part of the dispute’s broader context.

The timing is also relevant. RedotPay’s first deal with Binance began in November 2023 but collapsed within six months, reportedly over the same top-up issue. Both the end of that arrangement and the investor pitch materials fall within 2024.

Replacement Agreement and Rapid User Growth in 2025

In March 2025, RedotPay signed a replacement agreement with Binance. This new deal reportedly included a commitment to keep Binance-related funds separate.

The same month, RedotPay announced a $40 million funding round led by Lightspeed and reported more than 3 million registered users. Nine months later, the company raised an additional $107 million in a round led by Goodwater Capital. At that stage, RedotPay stated it had more than 6 million users, indicating that its user base had doubled during that period.

Binance claims that more than 470,000 of those users originated from Binance Card. Based on the growth from roughly 3 million to more than 6 million users, Binance’s figure would represent approximately one in six of the newly added users during that window. The filing does not specify the precise timeframe over which those users were transferred.

Binance assigns a lifetime value of $925 to each of the more than 470,000 users it says were diverted. The damages sought in the lawsuit are based on this valuation approach.

Termination of the Channel and Financial Figures in Dispute

Binance terminated the channel on April 3, 2026. It estimates that approximately $304 million flowed through the disputed top-up route.

The disagreement centers on who controls and owns customer relationships in crypto-linked payment systems. For users of crypto cards and payment services, this question affects how platforms structure partnerships and manage account funding channels.

RedotPay has announced that it completed a SOC 2 Type II audit in July. However, the scope of that report has not been made public, and it does not directly address the specific claims outlined in the lawsuit.

Some of RedotPay’s latest user and revenue figures originate from the company itself rather than from public regulatory filings. Paymentscan, cited by RedotPay as an independent tracker, reportedly sources its spend data from RedotPay and verifies only top-ups conducted on-chain. The disputed top-ups between Binance and RedotPay are therefore central to the case.

Implications for Planned US Listing and Banking Partners

RedotPay is reportedly pursuing a US listing at a valuation above $4 billion. JPMorgan, Goldman Sachs and Jefferies are said to be involved.

The lawsuit introduces allegations of control failures at a time when the company is engaging with major banks. While the court process in Hong Kong is expected to take months, financial institutions involved in a potential listing will need to assess the claims and their relevance to governance and operational controls.

For international users of crypto payment cards and related services, the case highlights how partnership agreements between exchanges and card issuers can affect access channels and platform growth metrics. It also underlines that user acquisition figures can become contested when multiple firms are involved in onboarding and funding processes.

Our Assessment

The dispute between Binance-affiliated companies and RedotPay centers on whether card top-ups funded from Binance accounts breached contractual obligations and resulted in the diversion of more than 470,000 users. The claim for $472.8 million is based on Binance’s stated lifetime valuation per user and the alleged $304 million that flowed through the channel before it was closed in April 2026. Separate proceedings in Hong Kong and Singapore, combined with RedotPay’s recent funding rounds and reported plans for a US listing, place the legal conflict within a broader context of rapid growth and partnership management in crypto-linked payment services.