Binance-affiliated entities sue RedotPay for improper user diversion, seeking $472.8 million in damages

Odaily Planet Daily News: Binance-affiliated entities Nest Trading, Distributed Technologies, and Chaintecs Consulting Singapore have filed a lawsuit in Hong Kong against the three co-founders of RedotPay — Gao Zhangpeng, Chan Wa Choi, and Yao Chao. The complaint alleges that the three individuals violated relevant agreements by diverting over 470,000 Binance Card users to RedotPay, with claimed damages amounting to $472.8 million.

Binance stated that starting in March 2026, it became aware that RedotPay allowed Binance Pay funds to be used for RedotPay card top-ups without proper segregation. During this collaboration, RedotPay obtained approximately $304 million in user funds from Binance Pay. In response, RedotPay said it will actively defend against all allegations and that this dispute will not disrupt the company's normal operations.

In addition, Binance-affiliated entity Chaintecs has also filed a lawsuit in Singapore against RedotPay-related parties, with a hearing scheduled for Friday. RedotPay had previously planned to pursue an IPO with a target valuation of approximately $4 billion. Company disclosure data shows current annualized payment volume of $14 billion, annualized revenue of $180 million, and a user base exceeding 8 million. (Bloomberg)