Three Binance-affiliated companies have sued RedotPay’s co-founders in Hong Kong, seeking $472.8 million over allegations that the payments firm diverted more than 470,000 Binance users to its competing stablecoin card network.
Nest Trading Ltd., DistributedTechnologies Ltd. and Chaintecs Consulting Singapore Pte named Gao Zhangpeng, Chan Wa Choi and Yao Chao as defendants. The claims remain allegations and have not been tested in court.
Lawsuit Targets RedotPay Card Top-Ups
The Hong Kong petition alleges that the founders breached a commercial agreement signed in March 2025. The partnership gave RedotPay access to Binance users while extending Binance Pay across RedotPay’s payment network.
Permitted uses included crypto-to-fiat conversion, transfers and purchases of RedotPay-branded products. Binance alleges that the agreement excluded funding RedotPay cards directly through Binance Pay.
The plaintiffs claim RedotPay nevertheless allowed and encouraged customers to use Binance Pay balances for card top-ups without separating those funds from prohibited payment activity. Roughly $304 million allegedly moved from Binance Pay users into the RedotPay ecosystem through the arrangement.
Binance assigned an estimated lifetime value of $925 to each allegedly diverted customer, producing the $472.8 million damages claim. The calculation represents the plaintiffs’ estimate rather than a confirmed financial loss.
Binance Ended Payment Support In April
Binance discovered the disputed activity in March 2026 and discontinued Binance Pay support on RedotPay effective April 3. The exchange publicly described the decision as part of a review of its merchant partners.
A Binance spokesperson said the company would use courts and other forums when necessary to pursue its position. Chaintecs has also filed related proceedings against RedotPay entities in Singapore, with an initial hearing scheduled for August 7.
The dispute follows rapid expansion across stablecoin-linked payment cards. RedotPay accounted for most tracked volume when monthly crypto card spending reached a record $650 million. Binance Pay separately processed more than $280 billion as crypto payments expanded beyond trading.
RedotPay Rejects Claims As IPO Plans Continue
RedotPay rejected the allegations and said it would vigorously defend the proceedings. The company said the cases would not affect its daily operations and declined further comment while the dispute remains before the courts.
The company also reported record onchain spending by its users during July and said Paymentscan continued to rank it as the largest tracked crypto card programme.
The lawsuit arrives as RedotPay seeks as much as $150 million in pre-IPO financing ahead of a potential US listing at a valuation above $4 billion. RedotPay has grown to more than eight million users after raising $107 million in its latest major funding round.
The Singapore proceedings are scheduled to reach their first hearing on August 7.
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