Binance Affiliates Sue RedotPay Founders for $473 Million Over Alleged User Diversion
Companies linked to Binance, such as Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore, have filed a lawsuit against RedotPay and its co-founders, alleging that they misappropriated nearly 500,000 Binance users and are seeking $472.8 million in compensation. This legal action arises from a collaboration that began in late 2023, during which RedotPay incorporated Binance Pay into its card payment system. Binance asserts that from March 2026, RedotPay permitted users to load cards via Binance Pay, breaching their agreements. The company estimates that over 470,000 users were affected, with damages calculated at $925 per user. The partnership concluded in April 2026 due to additional violations. RedotPay refutes the claims and is considering a U.S. IPO, while similar legal actions are underway in Singapore.
Key facts
- Binance affiliates Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore filed a lawsuit in Hong Kong against RedotPay and its co-founders.
- The lawsuit seeks approximately $472.8 million in damages.
- Binance alleges RedotPay diverted over 470,000 Binance users starting in March 2026.
- Damages calculated at $925 per user, totaling nearly $473 million.
- Approximately $304 million in Binance Pay user assets flowed into RedotPay's ecosystem.
- RedotPay denies all allegations and says operations will continue uninterrupted.
- RedotPay reports over 8 million users, $180 million annualized revenue, and $14 billion annualized payment volume.
- RedotPay is exploring a U.S. IPO that could raise over $1 billion, with JPMorgan, Goldman Sachs, and Jefferies advising.
- Parallel proceedings in Singapore involve co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao.
- The partnership began in late 2023; a new agreement in March 2025 introduced stricter safeguards; Binance terminated the partnership in April 2026.
Entities
Institutions
- Binance
- RedotPay
- Nest Trading
- DistributedTechnologies
- Chaintecs Consulting Singapore
- Bloomberg
- JPMorgan
- Goldman Sachs
- Jefferies
- NFT Plazas
Locations
- Hong Kong
- Singapore
- United States