RedotPay to Fight Binance's $473M Card Diversion Claim

RedotPay has publicly rejected Binance's allegations that it diverted hundreds of thousands of card customers, promising to "vigorously defend" itself against the roughly $473 million claim filed in Hong Kong. The response turns the dispute from a one-sided court filing into a contested legal battle over whether RedotPay misused its commercial partnership with Binance to grow its own card business.

Three Binance-linked companies — Nest Trading, Distributed Technologies and Chaintecs Consulting Singapore — brought the Hong Kong action against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao. Binance alleges that RedotPay allowed Binance Pay funds to be used to top up RedotPay cards, despite a March 2025 agreement requiring those funds to remain segregated. According to Binance's account, customers could use Binance Pay through RedotPay for crypto-to-fiat conversion, internal transfers and purchases of RedotPay-branded products, but not for funding RedotPay payment cards.

Binance claims more than 470,000 users were diverted from Binance Card and is seeking $472.8 million in damages. The customer count and the dollar claim are separate figures: the damages request is based partly on Binance's asserted lifetime value of those relationships. Binance also alleges that around $304 million in Binance Pay user funds entered RedotPay's card ecosystem. None of these figures has been tested or accepted by a court.

In a statement issued after the lawsuit became public, RedotPay called the allegations against the company and its co-founders unfounded and said the proceedings would not affect day-to-day operations. It assured users and partners that services would continue normally and said it recorded its highest monthly onchain spending to date. RedotPay has not yet disclosed a detailed legal defense or addressed the specific contractual language cited by Binance. The company says it serves more than 8 million users, generates about $180 million in annualized revenue and processes roughly $14 billion in annualized payment volume, though those figures have not been independently audited in the litigation.

Hong Kong civil litigation follows an adversarial common-law process, meaning Binance will need to support its allegations with evidence and RedotPay will have a chance to file a defense, challenge the contract interpretation and contest the claimed losses. No Hong Kong hearing date has been publicly confirmed as of August 6. A related Singapore proceeding appears to offer the first visible date: the Singapore Courts list a case conference for August 7 at 11:30 a.m. involving Chaintecs Consulting Singapore and several RedotPay entities, classified under "passing off."

Until a formal defense and contract terms are disclosed, Binance's case remains an allegation and RedotPay's denial remains a defense position. The legal fight will determine whether this was prohibited customer diversion or ordinary competition following a failed crypto-payment partnership.