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Points of Focus
- Binance is seeking nearly $473 million, alleging RedotPay improperly diverted more than 470,000 Binance Card users.
- The lawsuit comes as RedotPay pursues rapid global expansion, reporting over 8 million users and $14 billion in annualized payment volume.
- RedotPay says the litigation will not affect operations and plans to vigorously defend itself in court.
Binance has filed a lawsuit in Hong Kong against the founders of crypto payments firm RedotPay, accusing them of breaching a commercial agreement by directing hundreds of thousands of Binance users toward RedotPay’s payment card ecosystem instead of Binance Card.
The case, filed by Binance-affiliated entities Nest Trading, DistributedTechnologies and Chaintecs Consulting Singapore, alleges that RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao violated the terms of a partnership governing the use of Binance Pay. Binance estimates the alleged conduct resulted in $472.8 million in damages after more than 470,000 customers were diverted from its own card business.
The lawsuit marks one of the largest commercial disputes involving crypto payment platforms as competition intensifies in the rapidly expanding stablecoin payments market.
Binance says partnership expanded beyond agreed terms
The relationship between the two companies dates back to 2023, when RedotPay partnered with a Binance affiliate to expand payment options for crypto users.
Following disagreements, the parties entered a revised agreement in March 2025 that required Binance Pay funds to remain segregated and limited how they could be used inside RedotPay’s platform.
According to Binance’s filing, RedotPay allegedly allowed customers to use Binance Pay balances to top up RedotPay payment cards, activity the exchange said fell outside the scope of the revised agreement. Binance argues the arrangement effectively shifted customers away from Binance Card while helping RedotPay accelerate its own growth.
Court documents also allege that the partnership enabled $304 million in Binance Pay funds to flow into RedotPay’s ecosystem. Based on an estimated lifetime customer value of $925 per user, Binance claims damages approaching $473 million.
RedotPay says business remains unchanged
RedotPay has rejected the allegations and said the legal proceedings will have no impact on its operations.
In a public statement issued after Bloomberg reported the lawsuit, the company said it was confident in its legal position and would vigorously defend all claims through the Hong Kong courts. It declined to comment on the specific allegations while litigation remains ongoing.
🚨BINANCE SUES REDOTPAY FOUNDERS FOR $473M!
Binance-linked entities Nest Trading, DistributedTechnologies and Chaintecs have sued RedotPay co-founders in Hong Kong, per Bloomberg.
They claim the trio breached agreements by diverting over 470,000 users from Binance Card to… pic.twitter.com/tCIVaQJOdD
— Crypto Banter (@crypto_banter) August 5, 2026
The company also emphasized that its business continues to grow despite the dispute. RedotPay said the past month marked a record for onchain spending by customers and noted that it remains the highest-ranked crypto card program tracked by independent payments analytics firm Paymentscan.
RedotPay attributed its expansion primarily to organic customer adoption rather than partnership-driven growth, adding that stablecoins are increasingly being used by everyday consumers seeking a practical payment method and protection against inflation. The company reiterated its long-term strategy of expanding access to stablecoin-powered financial services while maintaining regulatory compliance.
Crypto payment competition is heating up
The lawsuit arrives at a pivotal moment for the crypto payments industry.
Founded in 2023, RedotPay has become one of Asia’s fastest-growing stablecoin payment companies. It offers Visa-backed virtual and physical payment cards that allow users to spend cryptocurrencies and stablecoins at merchants worldwide.
Investor materials previously reviewed by Bloomberg indicate the company has surpassed 8 million users, generates about $14 billion in annualized payment volume, and produces roughly $180 million in annualized revenue. RedotPay has also reportedly explored an initial public offering that could value the company at around $4 billion.
The company counts Accel, Blockchain Capital, Circle Ventures, Coinbase Ventures, and Galaxy Ventures among its investors.
The dispute also highlights how strategically important crypto payment infrastructure has become. As stablecoin adoption accelerates, exchanges and fintech companies are increasingly competing to control customer payment flows through wallets, debit cards, and merchant networks rather than relying solely on trading revenue.
The outcome of the Hong Kong proceedings could influence how future partnerships between crypto exchanges and payment providers are structured, particularly around customer ownership, payment routing, and the use of shared infrastructure.
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