Binance Takes RedotPay to Court — $470 Million and Allegations of User Diversion at the Center

Binance has taken legal action against crypto card company RedotPay and its co-founders in Hong Kong, alleging the company diverted more than 470,000 Binance users and caused nearly $473 million in losses. 

RedotPay Denies the Allegations

According to Bloomberg, three Binance-affiliated entities — Nest Trading, Distributed Technologies, and Chaintecs Consulting Singapore — filed the suit in Hong Kong against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. 

The central allegation is that the defendants breached an agreement by redirecting more than 470,000 Binance Card users to RedotPay, generating $472.8 million in damages for the plaintiffs.

RedotPay denied the claims and said it intends to fight them. “RedotPay is aware of legal proceedings initiated by Binance and will vigorously defend all claims,” a company spokesperson told Cryptoprowl. “These proceedings have no impact on RedotPay’s day-to-day operations.”

The company pushed back on any suggestion that the lawsuit reflects a troubled business. RedotPay told Cryptoprowl its user base has grown by more than 33% over the past six months, reaching over 8 million customers as of now, up from 6 million in November 2025. 

It also said it generates approximately $180 million in annualized revenue and processes roughly $14 billion in annualized payment volume. RedotPay described itself as the largest crypto card program by on-chain volume, citing independent data from payments research firm Paymentscan.

Binance Faces Mounting Scrutiny

The relationship between the two companies began in December 2023 when Binance Pay and RedotPay announced a partnership. The arrangement gave RedotPay access to Binance’s platform and user base — which is what makes the alleged user diversion claim particularly significant. 

The crypto exchange terminated that relationship in April 2026, discontinuing support for RedotPay services as part of what it described as a broader review of its merchant partnerships. The lawsuit followed.

The lawsuit adds to an already complicated legal landscape for Binance. As CryptoDepth has reported, European investigators have raised concerns about the exchange’s cooperation with law enforcement following a policy change in April 2025 that rerouted requests through the United Arab Emirates (UAE). 

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