Binance Accuses RedotPay of Deceiving Users in $470 Million Lawsuit

Affiliates of Binance are initiating legal proceedings against the founders of RedotPay, a cryptocurrency payment platform located in Hong Kong, alleging they have unlawfully redirected hundreds of thousands of customers to a competing service, leading to nearly $500 million in losses.

The entities linked with Binance Holdings, including Nest Trading, Distributed Technologies, and Chaintecs Consulting Singapore Pte, have filed a petition in Hong Kong. They claim that RedotPay’s co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao violated the terms of a contract signed the previous year, according to a court document acquired by Bloomberg News on Tuesday.

This original agreement aimed to benefit both parties: RedotPay would gain access to users of the world’s largest crypto exchange, while Binance would broaden its payment solutions across a larger network. However, Binance contends that users were allowed to fund a RedotPay stablecoin payment card, which breached the parameters of the agreement.

The timing of the lawsuit is crucial for RedotPay, which has been exploring an initial public offering possibly valued at $4 billion, according to Bloomberg. The company is also seeking additional funding amid changes in its senior management team.

Binance now claims that redirecting over 470,000 customers from Binance Card to RedotPay has contributed to RedotPay’s market valuation. By estimating the lifetime value of each customer at $925, Binance asserts it has faced losses amounting to $472.8 million.

“Since March 2026, the Binance Group has discovered that the RedotPay Group was allowing and promoting the use of Binance Pay funds, without proper segregation, for prohibited purposes within RedotPay, including funding RedotPay Card top-ups,” Binance stated in the legal filing.

RedotPay has refuted the allegations and stated it would “respond through the appropriate legal channels.”

“RedotPay acknowledges the legal action initiated by Binance and is prepared to vigorously defend all claims,” said a company spokesperson. “These proceedings do not impact RedotPay’s daily operations.”

A representative for Binance mentioned that while the company refrains from commenting on ongoing legal matters, “if necessary, we will use courts and other venues to ensure justice is pursued.”

Founded in 2023, RedotPay has rapidly established itself as one of Asia’s leading crypto payment providers. Its virtual and physical crypto debit cards operate on the Visa network and can be loaded with stablecoins—cryptocurrencies linked to established assets like the US dollar—enabling users to make purchases at retail and online merchants.

RedotPay initially entered into an agreement with a Binance affiliate in November 2023, as elaborated in the filing. However, this agreement was terminated in less than six months due to accusations that Binance Pay funds were misused for prepaid RedotPay Cards. A new agreement was formed in March 2025 with guarantees that Binance funds would be maintained separately, according to the document.

The contract stipulated that Binance customers could use funds on RedotPay for crypto-to-fiat exchanges, in-app transfers, or purchasing RedotPay-branded merchandise.

RedotPay has often leveraged its partnership with Binance to attract venture capital. In its 2024 fundraising materials for its Series A, reviewed by Bloomberg, the company highlighted its Binance alliance as a means to “accelerate user growth.” It specifically stated that users could deposit directly into the RedotPay Card from Binance Pay.

Binance claims that this collaboration enabled RedotPay to receive about $304 million in user funds from Binance Pay.

Since its inception in 2021, Binance Pay has facilitated over $280 billion in transactions, as noted in a report published in January 2026. The Binance Card, a Mastercard-branded debit card, allows users to spend directly from their crypto wallets at participating merchants, according to the company.

RedotPay has attracted investments from several venture firms, including Accel, Blockchain Capital, Circle Ventures, Coinbase Ventures, and Galaxy Ventures. It achieved a valuation of over a billion dollars in late 2025, with plans for a potential US public listing this year.

RedotPay’s annualized total payment volume surpassed $10 billion in December, doubling year-over-year, with revenues also doubling to $158 million, according to separate investor documents obtained by Bloomberg. The company currently reports $14 billion in annualized payment volumes, $180 million in annualized revenue, and over 8 million users.

However, despite its rapid growth, RedotPay has been experiencing significant executive turnover. Bloomberg has previously reported that at least five senior hires had tenures shorter than one year. Jonathan Tsang, who has served as the head of legal since 2024, announced his resignation effective July 21 via LinkedIn. He did not provide further comments on his departure, and RedotPay has not responded to inquiries about it.

In addition to the lawsuit in Hong Kong, Binance’s Chaintecs has initiated legal actions against RedotPay affiliates in Singapore. A hearing is set for Friday.

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