Binance Sues RedotPay Founder, Seeking $473 Million in Damages
0xBroomberg
Binance affiliates have sued the three co-founders of crypto-payment firm RedotPay in Hong Kong, alleging they funneled over 470,000 users to RedotPay's own products in breach of contract — and demanding $472.8 million in damages, a claim that lands squarely in the path of RedotPay's planned U.S. IPO.
What exactly is Binance alleging?
Three Binance entities — Nest Trading, Distributed Technologies, and Chaintecs Consulting Singapore — filed suit against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao.
The core charge: RedotPay allowed and encouraged users to top up RedotPay cards with Binance Pay funds, violating fund-segregation terms in their agreement.
In plain terms = the two sides agreed "your money stays in your channel, ours stays in ours" — Binance says RedotPay moved Binance's users and funds onto its own rails.
How did Binance arrive at $473 million?
Binance values each user at a lifetime value of $925. Multiply by the 470,000-plus users allegedly diverted → $472.8 million.
This means → Binance treats users as its most valuable asset; losing one user equals losing all future spending that user would generate.
This reflects what crypto-payment platforms actually compete over — not technology, but user relationships and fund flows.
How did the conflict between the two companies build up?
The two sides first signed a partnership in November 2023; it collapsed within six months over similar allegations.
They re-signed in March 2025 with RedotPay pledging fund segregation, but Binance says it found fresh violations starting March 2026.
In plain terms = the same problem erupted twice. The second contract was effectively a "last chance" — and Binance says RedotPay crossed the line again.
How has RedotPay responded?
A RedotPay spokesperson said the company will "vigorously contest all allegations through proper legal proceedings" and that the lawsuit has no impact on daily operations.
Binance did not comment.
Beyond the Hong Kong case, Binance's Chaintecs has filed a separate suit against a RedotPay affiliate in Singapore, with a hearing set for this Friday.
What does this mean for RedotPay's IPO and fundraising?
RedotPay currently runs $14 billion in annualized payment volume, $180 million in annualized revenue, and serves over 8 million users. Backers include Accel, Coinbase Ventures, and Galaxy Ventures.
The company reached a $1 billion valuation and was considering a U.S. listing at roughly HK$40 billion (~$5.1 billion).
This means → the lawsuit lands right in the IPO window. The $473 million claim is about 2.6 times RedotPay's annual revenue — even a favorable outcome could slow the listing timeline and shake investor confidence.
Content is for reference only, not financial advice.