Binance Sues RedotPay For $472.8M, Alleges Diversion Of 470,000 Users

Key Highlights:

• Binance affiliates have sued RedotPay and its co-founders in Hong Kong and Singapore.
• The lawsuit claims more than 470,000 Binance users were diverted, causing $472.8 million in losses.
• RedotPay has denied the allegations and says the case will not affect its business.

Binance-affiliated businesses have filed lawsuits against crypto card company RedotPay and its founders, claiming the company redirected more than 470,000 Binance users in breach of a commercial agreement.

The exchange's affiliates are seeking $472.8 million in damages, while RedotPay has strongly denied the allegations.

Binance Claims RedotPay Diverted More Than 470K Users

According to reported court filings, Binance affiliates Nest Trading, Distributed Technologies Ltd., and Chaintecs Consulting Singapore have filed legal action in Hong Kong against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao.

The companies claim RedotPay breached a business agreement by allowing customers to fund its crypto payment cards through Binance Pay in a way that violated the partnership terms.

Binance alleges that this helped RedotPay attract more than 470,000 users who would otherwise have remained Binance Card customers, resulting in losses of about $472.8 million.

The plaintiffs estimated the damages using an average lifetime customer value of $925 for each allegedly diverted user.

At the same time, Chaintecs Consulting Singapore has also filed a related lawsuit against RedotPay affiliates in Singapore, where a court hearing is scheduled for Friday.

Dispute Follows Binance's Earlier Partnership Review

The legal battle comes just months after Binance ended its relationship with RedotPay.

Earlier this year, Binance announced that Binance Pay services on the RedotPay platform would be discontinued from April 3, 2026, following a review of its merchant partners.

While Binance did not explain the reasons behind that decision at the time, the latest lawsuit suggests the disagreement had already grown into a much larger commercial dispute.

The case now centers on whether RedotPay operated outside the terms of its agreement with Binance and whether that directly caused customer losses for the exchange.

RedotPay Rejects Allegations

RedotPay has denied all claims and said the lawsuit will not affect its business.

In a statement, the company said it is "confident in our legal position" and will "vigorously defend all claims" through the proper legal process.

Because the matter is now before the courts, RedotPay said it would not comment further on the allegations.

The lawsuit is still in its early stages, and no final ruling has been issued by either court.

The company also reassured customers that its daily operations remain unchanged.

RedotPay said that "This proceeding has no impact on our day-to-day operations now or in the future."

RedotPay is Unfazed by the Lawsuit

The lawsuit comes as RedotPay continues growing rapidly in the crypto payments market. The company said it recently recorded its highest-ever monthly on-chain spending and remains the largest crypto card program, according to data tracked by Paymentscan.

Its business has expanded quickly over the past year. RedotPay's annualized payment volume exceeded $10 billion in December 2025, while its total payment volume grew 300% year over year.

The company has also attracted major investors, including Coinbase Ventures, Circle Ventures, and Blockchain Capital, raising $194 million across funding rounds in 2025.

According to earlier reports, RedotPay has also explored raising to $150 million as part of plans for a potential U.S. IPO that could value the company at more than $4 billion.

If Binance succeeds against RedotPay, the case could set an important example for how commercial agreements between exchanges and crypto payment providers are enforced.

With both sides standing firm, the dispute is likely to become one of the most closely watched legal cases in the crypto payments industry this year.