- Binance-affiliated companies filed a $472.8 million lawsuit alleging RedotPay diverted more than 470,000 users and breached commercial agreements.
- The complaint claims RedotPay improperly used Binance Pay funds for prohibited card top-ups, while RedotPay denied all allegations.
- The legal dispute follows the end of the companies’ payment partnership as RedotPay continues pursuing international expansion and growth.
Binance-affiliated companies have sued RedotPay’s co-founders in Hong Kong, accusing them of diverting more than 470,000 Binance users to the stablecoin payment platform. According to Bloomberg, the plaintiffs seek $472.8 million in damages, alleging the conduct breached commercial agreements between the companies. RedotPay denied the allegations and said it would defend itself through the legal process.
Lawsuit Centers on Payment Agreement
According to Bloomberg, Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore filed the lawsuit against Gao Zhangpeng, Chan Wa Choi, and Yao Chao.
The complaint claims RedotPay allowed Binance Pay funds to support prohibited RedotPay card top-ups. Binance alleged the funds were not kept separate despite contractual requirements.
The exchange affiliates said they identified the practice after March 2026. They later ended Binance Pay support for RedotPay on April 3, 2026, following a merchant partner review.
According to the filing, more than 470,000 users allegedly shifted from Binance’s payment services to RedotPay. The plaintiffs calculated damages using an estimated lifetime customer value of $925 per user.
RedotPay Rejects Allegations
RedotPay disputed the claims and said it remained confident in its legal position. The company stated it would vigorously defend all allegations raised in court. Meanwhile, Chaintecs also filed a related lawsuit against RedotPay affiliates in Singapore. A court hearing in that case is scheduled for Friday.
Bloomberg reported the companies first partnered in November 2023. That arrangement ended within six months after Binance raised similar concerns. A replacement agreement followed in March 2025. According to Bloomberg, it required Binance Pay funds to remain segregated while supporting approved services.
Previous Partnership and Expansion Plans
Under the later agreement, Binance users could convert crypto to fiat, make transfers, and purchase RedotPay products. However, card top-ups using Binance Pay remained prohibited.
Separately, RedotPay has expanded its payment business and explored a potential U.S. public listing. Reports said the company targeted a valuation above $4 billion, while JPMorgan, Goldman Sachs, and Jefferies advised on the proposed offering.
At the same time, Binance reported continued growth across its platform. The exchange said registered users reached 323 million during the first half of 2026, while cumulative trading volume climbed to $156 trillion.
