Binance affiliates allege RedotPay breached a partnership by diverting over 470,000 users and $304M in funds. The lawsuit threatens RedotPay's planned $4B IPO.
Binance affiliates filed a $472 million lawsuit against the founders of RedotPay, accusing the Hong Kong-based crypto card company of diverting hundreds of thousands of Binance users onto its own platform. The suit comes as RedotPay prepares a U.S. IPO that could value it above $4 billion.
The petition, filed in a Hong Kong court, names RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao as defendants. Three Binance-affiliated entities – Nest Trading Ltd., Distributed Technologies Ltd. and Chaintecs Consulting Singapore Pte – brought the case. The filing alleges the trio breached a March 2025 partnership agreement by diverting more than 470,000 Binance users to RedotPay’s own product instead of keeping them within the agreed scope of the deal, according to a copy of the petition reviewed by Bloomberg.
Binance calculated its damages by valuing each diverted user at $925 in estimated lifetime revenue, arriving at the $472.8 million figure. Separately, the exchange alleges that roughly $304 million in Binance Pay user funds was funneled into RedotPay’s ecosystem in ways the original agreement didn't permit, Bloomberg reported.
Under the 2025 partnership, RedotPay integrated Binance Pay into its crypto debit card system. The deal let Binance users tap RedotPay’s card infrastructure for a narrow set of purposes: converting crypto to fiat or making in-app transfers. According to the court filing, RedotPay allowed and even encouraged Binance Pay funds to be used without segregation for purposes the agreement explicitly excluded, including loading balances directly onto RedotPay’s own card product. Binance argues that RedotPay treated its user base and payment rails as a funnel into a competing card business rather than the narrow bridge the contract described.
RedotPay has been preparing a U.S. IPO that could raise more than $1 billion and value the company above $4 billion. JPMorgan and Goldman Sachs are engaged on the potential listing, along with Jefferies. The company has also been in talks to raise a further $150 million in private funding.
A lawsuit alleging that a meaningful share of RedotPay’s user base and the revenue tied to it came from an improperly diverted source directly challenges the growth narrative RedotPay would need to present to underwriters. Binance’s core legal theory – that hundreds of thousands of users and the revenue they generate were obtained through a breach of contract – is the same growth story RedotPay must defend to prospective public shareholders.
The Singapore hearing on August 7 will be the first test of how courts treat Binance’s claims. RedotPay has not filed a fuller public response addressing the diversion allegations. Whether the company does so before the hearing will shape how much the lawsuit affects its IPO timeline.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.