Binance Files $473 Million Lawsuit Against RedotPay Over Alleged User Diversion

In a recent development that has caught the attention of the cryptocurrency world, Binance-affiliated companies have taken legal action against RedotPay. The lawsuit, filed in Hong Kong, alleges that RedotPay breached a partnership agreement by diverting hundreds of thousands of users from Binance’s services to its own platform. This move has sparked a significant legal battle with Binance seeking nearly $473 million in damages.

The Accusations Against RedotPay

According to the claims presented by Binance, companies linked to the exchange—Nest Trading Ltd., Distributed Technologies Ltd., and Chaintecs Consulting Singapore Pte—have accused RedotPay’s co-founders Gao Zhangpen, Chan Wah Choi, and Yao Cho of directing significant user traffic away from Binance’s ecosystem. The core of the accusation lies in an alleged violation where RedotPay supposedly enabled users to top up their cards using Binance Pay without adhering to the agreed terms.

A Breach of Partnership

The initial collaboration between Binance and RedotPay was meant to be mutually beneficial. While RedotPay would gain access to users from one of the largest crypto exchanges globally, Binance aimed at expanding its payment service network. However, allegations suggest that since March 2026, RedotPay encouraged practices that went against this mutual understanding—specifically allowing users to replenish their cards through means that circumvented agreed protocols.

Financial Implications

Binance estimates that over 470,000 users were redirected from its services due to these actions. Evaluating the lifetime value of each user at approximately $925, they are claiming compensation amounting to $472.8 million. Furthermore, it is suggested that through these activities facilitated via Binance Pay, RedotPay managed to attract around $304 million in user funds.

RedotPay’s Stance

In response to these serious accusations, RedotPay has firmly denied any wrongdoing. A company representative emphasized their commitment to defending their position legally while ensuring that this lawsuit does not disrupt their daily operations.

The Context Amidst Growth Plans

This lawsuit emerges at a critical time for RedotPay as it explores potential initial public offering (IPO) opportunities with valuations reaching up to $4 billion. Additionally, as reported by Bloomberg in March 2026, they are actively pursuing up to $150 million in new investment funding.
The case highlights a significant moment for both parties involved: Binance seeks justice for what it perceives as a breach causing substantial financial loss while maintaining its market integrity; Meanwhile, RedotPay navigates through complex legal challenges amid ambitions for growth within the crypto sector.
This ongoing legal confrontation promises potential implications far beyond immediate monetary concerns—it could shape future collaborations between major players within evolving cryptocurrency landscapes worldwide.