Binance-affiliated companies are suing RedotPay's three co-founders for $472.8 million, alleging that users topped up RedotPay cards with money from Binance accounts, which the two firms had agreed to keep apart. According to reports from Bloomberg, the lawsuit centers on a practice that Binance now calls banned, despite RedotPay having pitched this same top-up feature to investors in 2024. The dispute involves what Binance claims was an unauthorized channel that brought more than 470,000 users to RedotPay, representing roughly one in six of the users added during the relevant period. The lawsuit seeks damages using a lifetime customer value of $925 for each allegedly diverted customer, bringing the total claim to nearly $473 million. RedotPay has rejected the allegations and stated that "this proceeding has no impact on our day-to-day operations now or in the future." In a statement published on its website, the company said it is "confident in our legal position, and are vigorously defending all claims."
RedotPay's 2024 Series A pitch materials, reviewed by Bloomberg, named the Binance tie-up as a way to "accelerate user adoption" and flagged direct deposits to RedotPay Card from Binance Pay. However, RedotPay's public Series A announcement never mentioned Binance once, with the pitch to investors remaining private while the press release was public. The first Binance deal began in November 2023 and fell apart within six months over the same top-up issue, with both collapses occurring in 2024. The legal claims stem from a commercial relationship that dates back to December 2023, when RedotPay announced support for Binance Pay deposits on its crypto payment cards. Binance alleges that "Since March 2026, the Binance Group has discovered that RedotPay Group had been allowing and encouraging Binance Pay funds to be used, without segregation, for the prohibited use within RedotPay, including card top-ups for RedotPay Card."
RedotPay signed a replacement deal with Binance in March 2025, promising to keep Binance money separate, and announced a $40 million round led by Lightspeed the same month, reporting over 3 million registered users. According to Bloomberg, the company raised an additional $107 million in September 2025, led by Goodwater Capital, counting more than 6 million users by then. The company has now disclosed updated operating figures, saying its user base has grown by more than 33% over the past six months to exceed 8 million customers globally. Binance values each of the 470,000 users it claims came from Binance Card at $925 in lifetime worth. RedotPay describes itself as the world's largest stablecoin payment card issuer and is planning a U.S. IPO of more than $1 billion at a potential $4 billion valuation.
RedotPay has rejected the allegations and stated that "this proceeding has no impact on our day-to-day operations now or in the future." In a statement published on its website, the company said it is "confident in our legal position, and are vigorously defending all claims." The company also disclosed that it now generates about $180 million in annualized revenue and processes roughly $14 billion in annualized payment volume. Chaintecs Consulting Singapore has filed a related lawsuit in Singapore against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao, with a hearing scheduled for Friday. The Hong Kong proceedings and related Singapore case are continuing, while both Binance and RedotPay have said they will address the dispute through the courts. Binance ended the second agreement with RedotPay in April 2026, saying only that the decision was part of its merchant partner review.
