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🇸🇬 Singapore /Economy & Trade

Binance affiliates sue RedotPay founders over alleged $605 million customer diversion

From The Straits Times · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Binance affiliates are suing RedotPay founders in Hong Kong for allegedly diverting hundreds of thousands of customers to a competing product.
  • The lawsuit claims nearly half a billion dollars in losses, alleging RedotPay violated an agreement meant to benefit both companies.
  • RedotPay denies the allegations and states the legal proceedings will not impact its operations or future plans.

Binance affiliates are pursuing legal action against the founders of Hong Kong-based crypto payments firm RedotPay, accusing them of a "fraudulent scheme" to divert hundreds of thousands of customers. The lawsuit, filed by Nest Trading Ltd., Distributed Technologies Ltd, and Chaintecs Consulting Singapore Pte, claims nearly half a billion dollars in losses. According to court documents, Binance alleges that RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao violated an agreement signed in 2025. This pact was intended to grant RedotPay access to Binance's vast user base while extending Binance's payment services. However, Binance claims its users were improperly allowed to top up a RedotPay stablecoin payment card, exceeding the agreement's scope.

Since March 2026, the Binance Group has discovered that RedotPay Group had been allowing and encouraging Binance Pay funds to be used, without segregation, for the prohibited use within RedotPay, including card top-ups for RedotPay Card.

— Binance filingBinance's allegation in the court document detailing the misuse of funds.

The legal battle emerges at a sensitive time for RedotPay, which had been reportedly exploring an initial public offering valuing the company at $4 billion. The firm has also been navigating executive changes and seeking new funding. Binance's lawsuit contends that channeling over 470,000 customers from Binance Card to RedotPay contributed to the company's valuation. Estimating a lifetime customer value of $925, Binance is seeking $472.8 million in damages. The filing states that since March 2026, RedotPay allegedly allowed and encouraged Binance Pay funds to be used for prohibited purposes within RedotPay, including topping up RedotPay cards.

RedotPay is aware of legal proceedings initiated by Binance and will vigorously defend all claims. These proceedings have no impact on RedotPay’s day-to-day operations.

— RedotPay spokespersonThe company's official response to the lawsuit.

RedotPay has rejected these accusations, vowing to "vigorously defend all claims" through the appropriate legal channels. A company spokesperson asserted that the proceedings have no bearing on RedotPay's daily operations. Following the story's publication, RedotPay reassured users and partners that operations would continue unaffected, noting record on-chain spending in the past month. A Binance spokesperson commented that while the company refrains from discussing ongoing litigation, it will pursue legal avenues "where necessary to pursue what is right."

where necessary we will use courts and other forums to pursue what is right

— Binance spokespersonBinance's general stance on pursuing legal action when needed.
DistantNews Editorial

Originally published by The Straits Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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