Binance Sues RedotPay Co-Founders for $472.8 Million Over Alleged User Diversion
Binance-affiliated companies have filed a $472.8 million lawsuit against RedotPay's co-founders in Hong Kong, accusing them of orchestrating a scheme to divert over 470,000 users away from Binance Card and onto RedotPay's competing stablecoin card product.
The lawsuit names co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao as defendants. Three Binance-linked entities, Nest Trading Ltd., Distributed Technologies Ltd., and Chaintecs Consulting Singapore Pte, are the plaintiffs. The suit argues that RedotPay's actions led to a loss of $472.8 million in lifetime value per user, with each allegedly diverted user assigned a value of $925.
The dispute centers around a commercial agreement signed between Binance and RedotPay in March 2025. The contract prohibited using Binance Pay balances to top up RedotPay's own payment cards, but RedotPay allegedly allowed users to do so outside the agreed scope. Binance cut off all Binance Pay functionality on RedotPay's platform in April 2026, citing a 'merchant partner review.'
RedotPay has rejected the allegations and pledged to vigorously defend its position. The company's IPO plans are now under pressure, with the lawsuit totaling nearly three times RedotPay's full-year 2025 revenue of $158 million.