USDBinance Affiliates Seek $472.8 Million From RedotPay
Lawsuits allege prohibited card funding and diversion of Binance customers
TL;DR
- Binance affiliates accuse RedotPay and its co-founders of diverting customers and violating payment agreements.
- The plaintiffs seek $472.8 million, while RedotPay rejects the allegations and says operations remain unaffected.
- Related proceedings are underway in Hong Kong and Singapore.
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Binance-affiliated companies have sued Hong Kong-based stablecoin payments company RedotPay and its co-founders, alleging that RedotPay diverted more than 470,000 Binance Card users and improperly allowed Binance Pay funds to finance its competing prepaid cards.
The legal proceedings were reported on August 5, 2026. Binance Holdings affiliates Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore filed the Hong Kong petition against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao.
The plaintiffs are seeking $472.8 million in damages. Binance affiliates said the alleged conduct breached commercial agreements between the companies and contributed to RedotPay’s growth and valuation as it considers a potential initial public offering.
The damages estimate assigns a lifetime customer value of $925 to each allegedly diverted user. The supplied figures do not align arithmetically when applied to exactly 470,000 customers: that calculation produces $434.75 million, while the stated claim divided by the per-customer value implies approximately 511,135 users.
Binance alleges prohibited use of payment funds
Binance alleges that RedotPay allowed users to fund RedotPay stablecoin payment cards with Binance Pay outside the agreed terms. The dispute centers on whether Binance-originating funds were properly segregated and restricted to uses permitted by the companies’ agreements.
“Since March 2026, the Binance Group has discovered that RedotPay Group had been allowing and encouraging Binance Pay funds to be used, without segregation, for the prohibited use within RedotPay, including card top-ups for RedotPay Card,” Binance said in the filing.
Binance and RedotPay first entered a commercial agreement in November 2023. RedotPay announced the Binance Pay partnership the following month, saying the integration enabled Binance Pay users to make direct deposits to RedotPay cards.
That initial arrangement ended less than six months later after Binance alleged that its funds had been used to top up RedotPay prepaid cards.
A second agreement followed in March 2025 and required Binance funds to remain separate. Binance customers could use those funds through RedotPay to convert cryptocurrency into fiat currency, conduct in-app transfers and purchase RedotPay-branded goods.
Card top-ups were excluded from the permitted activities. The arrangement also gave RedotPay access to Binance users and made Binance payment services available through RedotPay’s network.
Binance ended the partnership in April 2026, saying the decision formed part of a merchant-partner review. Support for Binance Pay features on RedotPay became unavailable effective April 3, 2026.
The original termination announcement no longer loaded when the supplied information was compiled, although it remained searchable on Binance’s website. Links attached to RedotPay’s earlier partnership announcement on X also directed users to unavailable pages.
A Binance spokesperson said: “While Binance does not comment on ongoing litigation, where necessary we will use courts and other forums to pursue what is right.”
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RedotPay rejects Binance’s claims
RedotPay denied wrongdoing and said it would challenge the allegations through the courts.
“RedotPay is aware of legal proceedings initiated by Binance and will vigorously defend all claims,” the company said. “The Company rejects the unfounded allegations made against it and its co-founders.”
A RedotPay spokesperson separately said, “RedotPay is strenuously defending the proceedings,” adding that the company would respond through the appropriate legal process.
RedotPay also said the litigation would not affect its day-to-day operations.
“We are confident in our legal position, and are vigorously defending all claims. As the matter is currently before the court, RedotPay will not be commenting further on the allegations, the ongoing proceedings, or matters that will be addressed through the judicial process,” the company said.
Chaintecs filed a related lawsuit against RedotPay affiliates in Singapore. A hearing was scheduled for Friday following the initial coverage of the dispute.
RedotPay reports rapid payments growth
RedotPay calls itself the world’s largest stablecoin payment card issuer and reports a global customer base exceeding 8 million users.
The company said its user base had increased by more than 33% during the previous six months. It also reported substantial annualized business activity while considering a U.S. listing.
The litigation remains based on allegations by Binance and its affiliates. The supplied information does not include a court ruling establishing that RedotPay diverted users, breached the agreements or caused the claimed losses.
This article has been refined and enhanced by ChatGPT.
