Binance Files Lawsuit Against RedotPay Over Alleged Fraud and Customer Diversion

Binance Holdings' affiliates have filed a lawsuit against Hong Kong-based crypto payments firm RedotPay, accusing its founders of alleged fraud and diverting hundreds of thousands of customers to a rival product. The suit claims that over $470 million in losses were incurred by Binance due to the diversion of users from Binance Card to RedotPay's card.

The lawsuit alleges that RedotPay's co-founders Chan Wa Choi, Gao Zhangpeng, and Yao Chao violated an agreement signed in 2025, which gave RedotPay access to the world's largest crypto exchange. The agreement allowed users to spend their Binance Pay funds on RedotPay-branded goods or use them for in-app transfers.

Binance has claimed that RedotPay channeled over 470,000 customers away from Binance Card to its own product, resulting in an estimated loss of $472.8 million. The company also alleges that the tie-up helped RedotPay receive about $304 million in user funds from Binance Pay.