Binance sues RedotPay over alleged diversion of 470,000 users
Binance-linked firms sued Hong Kong payments company RedotPay and its founders, alleging diversion of more than 470,000 Binance Card users and seeking about $473 million.
On Aug. 5, 2026, Binance-affiliated companies filed a petition in a Hong Kong court against Hong Kong payments firm RedotPay and its co‑founders Gao Zhangpeng, Chan Wa Choi and Yao Chao. The plaintiffs are Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore.
The complaint alleges RedotPay allowed users to fund RedotPay stablecoin payment cards using Binance Pay outside the scope of the firms’ commercial agreement, leading to the diversion of more than 470,000 Binance Card users. Binance calculates damages at about $472.8 million, based on an estimated lifetime customer value of $925 per user.
Chaintecs has filed a related suit in Singapore, where a hearing is scheduled for Friday. The Hong Kong filing also alleges the alleged redirection of users helped raise RedotPay’s valuation as the company considers an initial public offering. The petition seeks compensation tied to the lost customer base and other financial effects Binance attributes to the diversion.
RedotPay posted a response on its website, stating: “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.”
A Binance spokesperson issued a statement saying the company does not comment on active litigation but will use courts and other forums where necessary to pursue its claims.
Binance Card is a payments product that lets users spend cryptocurrency with a card linked to their Binance accounts. Binance Pay is a wallet-based feature for peer-to-peer and merchant payments. RedotPay issues payment cards that settle transactions in stablecoins. The dispute centers on whether funding RedotPay cards through Binance Pay breached the commercial terms between the firms.
The Hong Kong filing sets out specific allegations and a monetary demand but does not resolve the factual disputes. Court proceedings in Hong Kong and the related Singapore hearing will determine whether any contracts were breached and what remedies, if any, are appropriate.
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