Binance-affiliated entities have filed a $472.8 million lawsuit against RedotPay's co-founders in Hong Kong, alleging the stablecoin payment platform diverted more than 470,000 Binance users and breached commercial agreements between the two companies. The case highlights growing friction between crypto exchanges and payment-card providers as they compete for user retention in an expanding digital-payments market.

According to Bloomberg, the plaintiffs — Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore — initiated proceedings against Gao Zhangpeng, Chan Wa Choi, and Yao Chao. RedotPay has denied all allegations and stated it will defend itself through the legal process.

Dispute Centers on Payment Agreement

The complaint alleges that RedotPay allowed Binance Pay funds to be used for prohibited RedotPay card top-ups. Binance contends that the funds were not kept separate as required under their contractual arrangement, a practice the exchange affiliates said they identified after March 2026. Fund segregation — keeping partner funds separate from operational accounts — is a standard contractual safeguard in payment partnerships, and disputes over commingling have been a recurring issue in the crypto-fiat payment sector.

Following a merchant partner review, the plaintiffs terminated Binance Pay support for RedotPay on April 3, 2026.

The filing alleges that more than 470,000 users shifted from Binance's payment services to RedotPay. The plaintiffs calculated damages based on an estimated lifetime customer value of $925 per user, a metric commonly used in fintech to quantify the long-term revenue a platform expects from each acquired customer.

Prior Partnership History

Bloomberg reported that the companies first partnered in November 2023. That initial arrangement ended within six months after Binance raised similar concerns. A replacement agreement was reached in March 2025, requiring Binance Pay funds to remain segregated while supporting approved services.

Under the later agreement, Binance users could convert cryptocurrency to fiat, make transfers, and purchase RedotPay products. Card top-ups using Binance Pay, however, remained explicitly prohibited.

Related Proceedings and Company Responses

RedotPay disputed the claims, stating it remained confident in its legal position and would vigorously defend all allegations raised in court.

Meanwhile, Chaintecs has filed a related lawsuit against RedotPay affiliates in Singapore. A court hearing in that case is scheduled for Friday.

RedotPay's Expansion and Binance's Growth

Separately, RedotPay has been expanding its payment business and exploring a potential U.S. public listing. Reports indicate the company is targeting a valuation above $4 billion, with JPMorgan, Goldman Sachs, and Jefferies advising on the proposed offering. The lawsuit introduces potential complications for that process, as companies pursuing U.S. IPOs are required to disclose material litigation to regulators and prospective investors.

Binance has reported continued growth across its platform. The exchange stated that registered users reached 323 million during the first half of 2026, while cumulative trading volume climbed to $156 trillion.