Binance sues RedotPay over $470M user‑diversion claim

Binance RedotPay lawsuit user diversion $473 million

Binance-affiliated entities filed a lawsuit in Hong Kong against the crypto‑payments firm RedotPay and its three co‑founders—Gao Zhangpeng, Chan Wa Choi and Yao Chao—seeking nearly $473 million in damages. The complaint alleges that RedotPay diverted more than 470,000 Binance Card users and allowed Binance Pay funds to be used to top up RedotPay prepaid cards in breach of a commercial agreement, resulting in an estimated loss of $304 million. Damages are calculated using an assumed lifetime value of $925 per user.

Binance terminated its Binance Pay integration with RedotPay effective 3 April 2026, describing the move as part of a routine partner review. RedotPay has denied the allegations, said it will vigorously defend the case, and asserted that the litigation will not affect its daily operations. The company is also preparing a U.S. initial public offering that could value it at over $4 billion, a timeline that may be impacted by the lawsuit. A related legal action has been filed in Singapore by Chaintecs Consulting Singapore.

The dispute highlights growing tensions in the crypto‑payments sector and could influence regulatory scrutiny of user‑fund handling and partnership agreements.

Entities

Binance · Chan Wa Choi · Gao Zhangpeng · RedotPay · Yao Chao

Claims

What the coverage asserts, and how many sources carry each claim.

[● 4 SOURCES] Binance‑affiliated entities filed a lawsuit in Hong Kong against RedotPay. www.cryptobreaking.com · cryptobriefing.com · cointelegraph.com · koinbulteni.com
[● 3 SOURCES] The lawsuit was filed by Binance Holdings affiliates Nest Trading, Distributed Technologies and Chaintecs Consulting Singapore. www.cryptobreaking.com · cointelegraph.com · cryptobriefing.com
[● 3 SOURCES] The plaintiffs are seeking nearly $473 million in damages. www.cryptobreaking.com · cryptobriefing.com · cointelegraph.com
[● 3 SOURCES] RedotPay says it will contest the lawsuit and continue operations. www.cryptobreaking.com · cointelegraph.com · www.tokenpost.com
[● 2 SOURCES] Binance terminated its Binance Pay integration with RedotPay effective 3 April 2026. cryptobriefing.com · cointelegraph.com
[● 3 SOURCES] RedotPay co‑founders Gao Zhangpeng, Chan Wa Choi and Yao Chao are named as defendants. www.cryptobreaking.com · cointelegraph.com · cryptobriefing.com
[● 3 SOURCES] The lawsuit alleges RedotPay diverted more than 470,000 Binance Card users. www.cryptobreaking.com · cryptobriefing.com · cointelegraph.com
[● 3 SOURCES] Damages are calculated using an estimated lifetime customer value of $925 per user. www.cryptobreaking.com · cointelegraph.com · cryptobriefing.com