Affiliates of Binance are pursuing legal action against the co-founders of RedotPay, a cryptocurrency payment organization located in Hong Kong. They claim that RedotPay has unlawfully redirected hundreds of thousands of customers to a competing service, leading to nearly $500 million in losses.
The companies linked to Binance Holdings, such as Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore Pte, have filed a petition in Hong Kong. They accuse RedotPay’s co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao of violating the terms of a contract established last year, according to court documents obtained by Bloomberg News on Tuesday.
This initial agreement was intended to be mutually beneficial: RedotPay would gain access to users of the world’s largest crypto exchange, while Binance aimed to broaden its payment services across a more extensive network. However, Binance contends that users were allowed to fund a RedotPay stablecoin payment card, which is not permitted under the agreement.
The timing of the lawsuit is crucial for RedotPay, which is reportedly contemplating an initial public offering valued at around $4 billion, as noted by Bloomberg. The company is also in search of additional funding amidst changes in its senior management team.
Binance now asserts that the redirection of over 470,000 customers from the Binance Card to RedotPay has inflated RedotPay’s market valuation. By calculating the lifetime value of each customer at $925, Binance claims to have sustained losses amounting to $472.8 million.
“Since March 2026, the Binance Group has discovered that the RedotPay Group was allowing and promoting the use of Binance Pay funds, without proper segregation, for prohibited purposes within RedotPay, including funding RedotPay Card top-ups,” Binance stated in its legal filing.
RedotPay has denied these allegations and stated it will “respond through the appropriate legal channels.”
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“RedotPay acknowledges the legal action initiated by Binance and is prepared to vigorously defend all accusations,” a company representative stated. “These proceedings do not impact RedotPay’s daily operations.”
A spokesperson for Binance mentioned that while the company does not comment on ongoing legal issues, “when necessary, we will use courts and other venues to ensure justice is served.”
Founded in 2023, RedotPay has rapidly established itself as one of Asia’s premier crypto payment companies. Its virtual and physical crypto debit cards on the Visa network can be loaded with stablecoins—cryptocurrencies pegged to established assets like the US dollar—allowing users to make purchases at both retail and online merchants.
RedotPay initially entered into an agreement with a Binance affiliate in November 2023, as indicated in the filing. This arrangement, however, was terminated within six months due to accusations that Binance Pay funds were misappropriated for prepaid RedotPay Cards. A new agreement was formed in March 2025, ensuring that Binance funds would remain separate, according to the document.
Under the contract, Binance customers could use funds on RedotPay for crypto-to-fiat exchanges, in-app transfers, or purchasing RedotPay-branded merchandise.
RedotPay has frequently highlighted its partnership with Binance to attract venture capital. In 2024 fundraising documents for its Series A, reviewed by Bloomberg, the company cited its alliance with Binance as a way to “accelerate user growth.” It specifically noted that users could deposit directly into RedotPay Card from Binance Pay.
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Binance alleges that this partnership enabled RedotPay to receive approximately $304 million in user funds from Binance Pay.
Since its inception in 2021, Binance Pay has processed over $280 billion in transactions, as noted in a report published in January 2026. The Binance Card, which is a Mastercard-branded debit card, allows users to spend directly from their crypto wallets with participating merchants, according to the company.
RedotPay has attracted investments from various venture firms, including Accel, Blockchain Capital, Circle Ventures, Coinbase Ventures, and Galaxy Ventures. It achieved a billion-dollar valuation in late 2025 and is aiming for a potential US public listing this year.
RedotPay’s annualized total payment volume exceeded $10 billion in December, marking a year-over-year doubling, with revenues also doubling to $158 million, according to independent investor documents reviewed by Bloomberg. The company currently reports $14 billion in annualized payment volumes, $180 million in annualized revenue, and over 8 million users.
However, despite its rapid growth, RedotPay has been experiencing notable executive turnover. Bloomberg previously reported that at least five senior hires lasted less than a year. Jonathan Tsang, who served as head of legal since 2024, announced his resignation effective July 21 via LinkedIn. No further comments were provided regarding his departure, and RedotPay did not respond to inquiries about it.
In addition to the lawsuit in Hong Kong, Binance’s Chaintecs has also started legal proceedings against RedotPay affiliates in Singapore. A hearing is set for Friday.
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