Binance Sues RedotPay's Founders for $472.8 Million Over User Diversion

Binance-affiliated entities filed suit against RedotPay's co-founders—Gao Zhangpeng, Chan Wa Choi, and Yao Chao—in Hong Kong, alleging a fraudulent scheme where RedotPay's stablecoin card allowed users to top up funds directly from Binance Pay without segregating the money, contrary to prior agreements. The lawsuit, filed by Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore, claims Binance discovered this practice after March 2026 and cut off the channel on April 3, with $304 million in funds transferred. The damages are calculated based on a lifetime value of $925 per diverted user, totaling $472.8 million. A related Singapore suit has a hearing scheduled for Friday. RedotPay has denied the allegations, stating it is confident in its legal position and that the proceedings do not affect its operations. According to Bloomberg, this is the second time the same top-up mechanism caused a dispute between the companies. The first partnership collapsed in 2023, and a replacement deal in 2025 failed to prevent the issue. RedotPay’s 2024 Series A pitch materials highlighted Binance’s tie-up as a growth driver, though the funding round announcement did not mention Binance. Binance’s complaint coincides with RedotPay’s rapid growth: it secured a $40 million round in 2025, reaching over 3 million users, followed by a $107 million Series B in 2024, expanding its user base to over 6 million and annualized payment volume to $10 billion. Binance’s calculations suggest that about one in six of RedotPay’s new users during this period came through the Binance channel. This dispute raises questions about RedotPay’s independent growth and its potential valuation above $4 billion if it secures a US listing, with JPMorgan, Goldman Sachs, and Jefferies reportedly involved. The company has announced a SOC 2 Type II audit but has not disclosed its scope. Meanwhile, RedotPay’s user and revenue figures remain self-reported, leaving underwriters to assess how much of its growth story is truly its own.