Binance is suing RedotPay founders for $472.8 million, claiming 470,000 users shifted to RedotPay cards. A related Singapore hearing is set for Aug. 7, 2026.
Binance affiliates filed a lawsuit in Hong Kong against the founders of crypto payments company RedotPay, seeking about $470 million over an alleged breach of contract and the diversion of users to RedotPay prepaid cards.
The case, brought by Nest Trading and Distributed Technologies, with Chaintecs Consulting Singapore also named as a claimant, targets Gao Zhangfeng and Chan Wa Choi, both RedotPay co-founders, and a third co-founder, Yao Chao. Binance claims the founders allowed Binance users to move funds into RedotPay card top-ups, exceeding limits set in a partnership agreement.
The dispute centers on an agreement signed in March 2025. Under that deal, RedotPay gained access to Binance users, and Binance aimed to extend its payment services through RedotPay's network. The filing says RedotPay used the connection to support crypto-to-fiat conversion and in-app transfers, and to let users buy RedotPay products. The same system allowed Binance Pay funds to load RedotPay prepaid cards without separation.
Binance says more than 470,000 users switched from Binance card services to RedotPay cards. The exchange values each user at $925 in expected lifetime revenue, putting total losses at $472.8 million, according to the complaint. Binance also claims about $304 million in customer funds moved from Binance Pay into RedotPay's system, activity it says went beyond the agreed services and helped RedotPay grow its user base.
This was not the first dispute. The two companies signed an earlier agreement in November 2023, which ended within six months after Binance raised similar concerns about users funding RedotPay cards through Binance Pay. A new agreement followed in March 2025 after RedotPay gave assurances on how customer funds would be handled. Binance says it discovered in March 2026 that the same conduct had continued.
RedotPay said it would defend itself through the legal process and that the case would not affect its daily operations.
RedotPay is preparing for a possible U.S. initial public offering, a listing that could raise more than $1 billion at a valuation above $4 billion. JPMorgan and Goldman Sachs are linked to the potential listing, with Jefferies also reported as an underwriter. RedotPay says it serves more than 8 million users and processes $14 billion in annualized payment volume. A related case filed by Chaintecs in Singapore is set for a hearing on Aug. 7, 2026. AlphaScala's crypto market analysis covers similar legal and regulatory pressures on payment firms.
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