Binance-affiliated entities have sued three RedotPay co-founders in Hong Kong and are seeking $472.8 million, with a separate proceeding also underway in Singapore, according to an Aug. 5 Bloomberg report cited in the source article.
The plaintiffs are Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore. The defendants are RedotPay co-founders Gao Zhangpeng, Chen Huacai, and Yao Chao. The report says Chaintecs has also opened a parallel front in Singapore, where a hearing is scheduled for Friday this week.
The dispute traces back to a Binance Pay card top-up arrangement
The article traces the relationship to November 2023, when RedotPay was still a young Hong Kong-based crypto payments company and Binance was expanding its payments footprint. Under the cooperation agreement, users could fund RedotPay-issued payment cards directly with balances from Binance Pay.
Binance’s central allegation, as presented in the report, is about fund segregation. It claims RedotPay allowed users to top up RedotPay cards with Binance Pay funds without isolating those funds from RedotPay’s own pool.
Binance says about 470,000 users were diverted
The article says Binance argues that around 470,000 Binance card users, who would otherwise have remained within Binance’s payments ecosystem, were funneled into RedotPay’s system through that setup.
The $472.8 million damages claim was reportedly built on a lifetime value model. Binance assigned each of those users an LTV of $925, and multiplied that figure by roughly 470,000 users to reach about $472.8 million.
The source article notes that LTV-based damage calculations are common in traditional internet litigation. It also says this may be one of the first times such a framework has appeared in a crypto-sector dispute.
A prior agreement had already broken down
According to the article, this was not the first breakdown between the two sides. An earlier cooperation agreement collapsed in early 2024 over the same issue. The companies then signed a new agreement in March 2025, with a fresh commitment to fund segregation.
The relationship fractured again on April 3, 2026, when Binance unilaterally cut off Binance Pay functionality on the RedotPay platform, the report says. The matter has now escalated into litigation.
RedotPay’s size and IPO ambitions now face scrutiny
The article describes RedotPay as one of the larger players in crypto payments and lists several operating metrics:
- More than 6 million users
- About $10 billion in annualized total payment volume
- Annualized revenue above $150 million
- An IPO valuation target above $4 billion
The same report says RedotPay, founded in 2023, is aiming for a U.S. listing. It adds that rumored banking partners for the offering include major Wall Street firms, naming JPMorgan, Goldman Sachs, and Jefferies as examples.
The company’s core business, as outlined in the article, is to let users load stablecoins such as USDT and USDC, then spend through merchants that accept Visa or Mastercard, with payments settled in fiat at the point of use.
RedotPay says it will fight the claims
RedotPay has said it will actively defend against all allegations and that the lawsuit will not affect normal operations, according to the source article.
Even so, the piece argues that a pending claim of this size could disrupt the timing of the company’s IPO push. It also notes that compliance is a central part of the pitch for any crypto payments company heading toward public markets, and allegations tied to improper user diversion and lack of fund segregation could weigh on that narrative.
A broader fight over who owns the customer relationship
Beyond the contract dispute itself, the article frames the case as a fight over user ownership between a platform and an ecosystem participant. Under that reading, Binance’s side is that users reached through Binance Pay remain Binance users in substance, while RedotPay could argue that users independently chose its product and merely used Binance Pay as a funding method.
The source compares that tension to earlier Web2 battles over traffic, distribution, and platform control. In this case, the same conflict is playing out in Web3 payments, with much larger dollar figures attached.
Why the case matters for crypto payments
The article closes by arguing that the lawsuit could shape more than RedotPay’s listing timeline. It may also define new boundaries for cooperation models across crypto payments. In the account presented by the source, RedotPay’s rapid customer acquisition through Binance Pay was commercially effective, but it also created a compliance risk that became legal ammunition after the partnership broke down.
What happens next in the Hong Kong and Singapore proceedings may carry implications for both RedotPay’s IPO path and the way crypto payment companies structure partnerships going forward.