Binance-affiliated companies have initiated a lawsuit in Hong Kong against the co-founders of RedotPay, seeking approximately $473 million in damages. The central allegation is that RedotPay diverted over 470,000 users from Binance Card by enabling them to fund RedotPay’s payment cards through Binance Pay, which allegedly violated an existing commercial agreement.
The legal action was filed by Nest Trading, Distributed Technologies Ltd., and Chaintecs Consulting Singapore against RedotPay’s co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. According to court filings cited by Bloomberg, the plaintiffs calculated the claimed damages using a lifetime customer value of $925 for each allegedly diverted user. Chaintecs has also commenced a related case in Singapore.
Binance reportedly discontinued Binance Pay features and functionality on the RedotPay platform from April 3, 2026. The precise terms of the commercial agreement between Binance and RedotPay remain unclear, and it is uncertain whether RedotPay’s actions were intentional or accidental. The outcomes of the legal proceedings in Hong Kong and Singapore are yet to be determined.
This dispute emerges as RedotPay has been actively expanding its presence in the crypto payments sector and preparing for a potential public listing. The company was reportedly in talks to raise up to $150 million. In the preceding year, RedotPay secured $194 million across two funding rounds in September and December 2025. By December 2025, RedotPay’s annualized total payment volume had surpassed $10 billion, marking a 300% year-over-year increase.
RedotPay was reportedly targeting a U.S. initial public offering (IPO) that could value the business at over $4 billion. Financial institutions including JPMorgan Chase, Goldman Sachs, and Jefferies Financial Group were said to be advising RedotPay on this potential New York listing, which could occur as early as the current year. Investors in RedotPay include Coinbase Ventures, Circle Ventures, and Blockchain Capital.
Meanwhile, Binance continues to expand its market reach and product offerings. The exchange reported a registered user base of 323 million across more than 100 countries, with a 7% increase in users during the first half of 2026. Institutional users also saw a significant rise of 9% in the same period. Binance’s cumulative trading volume reached $156 trillion, with an additional $11.4 trillion added in the first six months of 2026. Furthermore, its traditional finance products have generated over $80 billion in monthly trading volume since March, and its stock trading service, launched in June, achieved $1 billion in assets under management within its first month.
The lawsuit highlights significant contractual and business practice questions within the competitive crypto payments industry. The success of RedotPay’s fundraising and potential public listing efforts may be impacted by these ongoing legal challenges, underscoring the importance of clear agreements and the potential risks associated with rapid growth and user acquisition strategies in the fintech space.
Why This Matters
The materials describe a narrow update: Binance-affiliated companies have filed a lawsuit against the co-founders of RedotPay, seeking damages of nearly $473 million. The exact terms of the commercial agreement between Binance and RedotPay.
Broader Context
Source materials place the factual news in this context: The dispute comes months after Binance’s decision to end its support for the company.
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