Binance Sues RedotPay Founders for $470 Million - Blockonomi

by · Blockonomi

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  • Binance is seeking about $472.8 million from three RedotPay co-founders.
  • The exchange claims RedotPay diverted more than 470,000 Binance users to its card service.
  • Binance alleges around $304 million moved from Binance Pay into RedotPay’s ecosystem.
  • The dispute centers on an alleged breach of a partnership agreement signed in March 2025.
  • RedotPay rejected the claims and said the lawsuit would not disrupt daily operations.

Binance has sued three founders of crypto payments company RedotPay, seeking about $470 million in damages over an alleged breach of contract and user diversion. The case was filed in Hong Kong by Binance affiliates Nest Trading, Distributed Technologies and Chaintecs Consulting Singapore.

The defendants are RedotPay co-founders Gao Zhangfeng, Chan Wa Choi and Yao Chao. Binance claims the founders allowed its users to move funds into RedotPay card top-ups, despite limits set in a partnership agreement.

Binance Alleges Breach of Payment Deal

The dispute centers on an agreement signed in March 2025. Under the deal, RedotPay gained access to Binance users, while Binance aimed to expand its payment services through RedotPay’s network.

Binance says RedotPay could support crypto-to-fiat conversion, in-app transfers and purchases of RedotPay products. However, the filing claims RedotPay also allowed Binance Pay funds to load RedotPay prepaid cards without separation.

According to the complaint, more than 470,000 users moved from Binance card services to RedotPay cards. Binance valued each user at $925 in expected lifetime revenue and calculated total losses at $472.8 million.

The exchange also claims about $304 million in customer funds moved from Binance Pay into RedotPay’s system. Binance argues that this activity went beyond the agreed services and helped RedotPay grow its user base.

Earlier Agreement Ended Over Similar Claims

The two companies had entered an earlier agreement in November 2023. That deal ended within six months after Binance raised similar concerns about users funding RedotPay cards through Binance Pay.

A new agreement followed in March 2025 after RedotPay gave assurances on how customer funds would be handled. Binance says it discovered in March 2026 that the same disputed activity had continued.

RedotPay Rejects Claims as IPO Plans Continue

RedotPay said it would defend itself through the legal process. The company added that the case would not affect its daily operations.

The lawsuit comes as RedotPay prepares for a possible US initial public offering. The company could seek more than $1 billion at a valuation above $4 billion. JPMorgan, Goldman Sachs and Jefferies are linked to the potential listing.

RedotPay says it serves more than 8 million users and processes $14 billion in annualized payment volume. A related case filed by Chaintecs in Singapore is set for a hearing on August 7, 2026.

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