Binance Sues RedotPay Founders Over Alleged Diversion of Customers

Binance affiliates have filed a lawsuit against RedotPay, accusing its founders of diverting hundreds of thousands of customers to a competing product in what they call a 'fraudulent scheme'. The Binance Holdings-affiliated entities, Nest Trading Ltd, DistributedTechnologies Ltd and Chaintecs Consulting Singapore Pte, claim nearly half a billion dollars in losses. The lawsuit alleges that RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao violated the terms of an agreement signed in 2025.

The original agreement between Binance and RedotPay allowed users to top up a RedotPay stablecoin payment card using funds from Binance Pay. However, Binance alleges that its users were allowed to use their funds for prohibited activities on RedotPay Card, including card top-ups. This allegedly helped RedotPay receive about $304 million in user funds from Binance Pay.

Binance is now claiming $472.8 million in losses, estimating the lifetime value per customer at $925. The lawsuit comes at a critical time for RedotPay, which has been considering an initial public offering at a potential $4 billion valuation. It has also been trying to raise fresh funds amid churn in senior executives.