Binance Sues RedotPay Founders: $473M Over 470,000 Users

Binance-affiliated entities have filed a lawsuit in Hong Kong against the founders of RedotPay, alleging the crypto payments firm improperly used Binance Pay to steer users toward its own stablecoin cards and away from Binance Card. The plaintiffs — Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore — are seeking roughly $472.8 million in damages from RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao.

The dispute centers on an arrangement under which RedotPay customers could fund their payment cards through Binance Pay. The plaintiffs say RedotPay allowed funding methods that fell outside the scope of the commercial agreement, redirecting more than 470,000 users from Binance Card. Binance calculated its damages using an estimated lifetime customer value of $925 per user, reaching a total claim of $472.8 million.

The allegations have not yet been proven in court. RedotPay said it will vigorously defend the case and that the proceedings will not affect its day-to-day operations. A Binance spokesperson declined to discuss the litigation in detail but said the company will use courts where necessary.

The case also extends beyond Hong Kong. Chaintecs has filed a related action in Singapore, where a hearing is scheduled for Friday. Parallel proceedings could raise separate questions about jurisdiction and contract enforcement across regional entities.

The size of the claim reflects how much value exchanges place on payment-card users. Crypto cards generate revenue from transaction fees, conversion charges and customer balances, and they help keep users inside a company's broader ecosystem. The plaintiffs also allege the diverted users contributed to RedotPay's valuation as it considers a potential initial public offering, giving the case financial implications beyond lost fees.

For RedotPay, the immediate test is whether the litigation affects funding, partnerships or IPO preparations. For Binance, the challenge is proving both the alleged breach and its assumptions about lost customer value. The outcome could push crypto exchanges and payment firms to define funding routes, customer attribution and permitted marketing practices more precisely in future partnerships, as the industry increasingly competes for the same users through interconnected services.