Binance-affiliated companies have sued RedotPay and three of its co-founders for nearly $473 million, accusing the Hong Kong-based payments firm of diverting more than 470,000 Binance Card users. RedotPay denies the claims and says the litigation will not disrupt its day-to-day business.
Binance affiliates Nest Trading, Distributed Technologies Ltd., and Chaintecs Consulting Singapore filed the lawsuit against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. Bloomberg reported the case on Wednesday, citing a Hong Kong court filing.
Lawsuit centers on a commercial agreement breach
The plaintiffs allege that RedotPay let users fund its stablecoin payment cards through Binance Pay outside the terms of an existing commercial agreement, diverting more than 470,000 users away from Binance Card. They calculated the damages using a lifetime customer value of $925 for each allegedly diverted user, arriving at a claim of nearly $473 million.
Chaintecs has also filed a related case in Singapore against the same three co-founders, with a hearing scheduled for Friday. The Binance-linked companies argue the alleged diversion of users contributed to RedotPay's corporate value as the firm weighs a potential U.S. IPO.
RedotPay denies the allegations
RedotPay rejected the claims and said the litigation will not disrupt its day-to-day business. According to a statement on its website: "We are confident in our legal position, and are vigorously defending all claims", and the company added it would not comment further while the matter is before the court.
The firm also disclosed updated figures, saying its user base has grown more than 33% over the past six months to exceed 8 million customers globally. It now generates about $180 million in annualized revenue and processes roughly $14 billion in annualized payment volume.
Dispute follows Binance's exit from the partnership
The commercial relationship dates back to December 2023, when RedotPay first announced support for Binance Pay deposits on its payment cards. Binance later ended that arrangement, discontinuing Binance Pay features on RedotPay's platform from April 3, 2026, as part of a review of its merchant partners.
RedotPay has continued expanding since then. It was in talks to raise as much as $150 million while targeting a U.S. IPO that could value the business above $4 billion, with JPMorgan Chase, Goldman Sachs, and Jefferies Financial Group advising on a potential New York listing. The firm had already raised $194 million across two funding rounds in September and December 2025, backed by Coinbase Ventures, Circle Ventures, and Blockchain Capital.
The Hong Kong and Singapore proceedings are continuing, with both sides saying they will address the dispute through the courts.
Sources: CryptoPotato, crypto.news
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