Binance Sues RedotPay for $472.8M Over Alleged User Diversion

Binance affiliates file suit in Hong Kong and Singapore against RedotPay founders, citing breach of agreement and unauthorized use of $304M in user funds.

Woofun AI reports that Binance-affiliated entities Nest Trading, Distributed Technologies, and Chaintecs Consulting Singapore have initiated legal proceedings in Hong Kong against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. The complaint alleges the defendants breached agreements by diverting over 470,000 users from Binance Card to RedotPay, seeking damages totaling $472.8 million. Binance asserts that since March 2026, RedotPay permitted Binance Pay funds to be used for card top-ups without proper isolation, resulting in approximately $304 million in user funds being accessed by RedotPay. RedotPay stated it will actively defend against the allegations and confirmed that daily operations remain unaffected.

Additionally, Chaintecs has filed a separate lawsuit against RedotPay affiliates in Singapore, with a hearing scheduled for Friday. RedotPay previously pursued an IPO with an estimated valuation of $4 billion, reporting annualized payment volume of $14 billion, revenue of $180 million, and a user base exceeding 8 million.