TL;DR
- In a lawsuit Binance-linked companies are seeking $472.8 million from RedotPay’s founders over alleged customer diversion tied to a payments partnership
- The claim is based on estimated lifetime value of more than 470,000 users, not confirmed losses or awarded damages
- RedotPay denies the allegations and says its operations and customer services continue without disruption
Binance-linked companies have filed a lawsuit against the co-founders of RedotPay, seeking $472.8 million in damages over alleged customer diversion and contract breaches. The dispute centers on a payments partnership that allowed RedotPay to use Binance infrastructure for certain services. The headline figure reflects Binance’s estimate of the future value of customers it claims were diverted from its card business. RedotPay denies the allegations and says its services continue as normal.
The partnership behind the conflict
Binance Pay and RedotPay both operate in the crypto card market, each offering its own card product. Binance issues Binance Card, while RedotPay issues a separate card that competes for similar users. Despite this competition, the companies had a payments integration that allowed Binance Pay users to connect to RedotPay’s platform for limited purposes. It gave RedotPay access to Binance’s payment rails and user base under defined conditions.
Their first agreement began in November 2023 and ended within six months, after Binance said its funds were used to top up RedotPay’s prepaid cards.
RedotPay’s 2024 Series A pitch materials described Binance Pay funding RedotPay cards as an existing feature during this period, when no formal agreement was in effect between the two companies. The available court filings do not address whether this capability was actively in use at that time.
A second agreement started in March 2025. Under its terms, RedotPay was required to keep Binance funds separate. It could use them only for specific purposes, such as converting crypto to fiat, enabling in-app transfers, and supporting certain purchases. The agreement set explicit boundaries on how customers could use Binance Pay funds within RedotPay’s system, since certain uses could channel Binance’s infrastructure into supporting a competing card product.
Binance ended the second agreement in April 2026.
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The claim and the mechanism
According to public reporting, three Binance-linked companies, Nest Trading, Distributed Technologies, and Chaintecs Consulting Singapore, brought the claim in a Hong Kong court. The defendants are RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao.
The plaintiffs allege that more than 470,000 Binance Card users were diverted to RedotPay. They estimate each customer to be worth around $925 in lifetime value and use that figure to support the $472.8 million claim. Customer lifetime value reflects projected future revenue from a user relationship.
The lawsuit alleges that Binance Pay funds were used to top up RedotPay prepaid cards, a use Binance argues was not permitted under the second agreement. Binance says this mechanism enabled RedotPay to function as a low-friction alternative to Binance Card. Allowing Binance Pay balances to fund RedotPay cards formed the basis for its claim that users shifted from Binance’s card to RedotPay. The case now centers on whether RedotPay broke the contract terms and whether those actions led to customer losses.
RedotPay disputes the allegations
RedotPay has rejected the claims and says it will defend its position. In a public statement, the company said the legal proceedings would not affect its day-to-day operations.
The company also stated that its growth has been largely organic, driven by referrals and word of mouth. This directly challenges the allegation that it diverted users from Binance.
There are no public indications that RedotPay’s services, including card access or withdrawals, have been disrupted. For customers, the dispute has not surfaced as an operational issue; it remains a corporate legal matter.
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Status and open questions
A related proceeding involving Chaintecs has also been reported, with a hearing scheduled in Singapore.
Several questions remain unresolved. These include the exact terms of the agreements, whether the alleged use of funds breached those terms, and whether Binance can substantiate the claimed number of diverted customers.
