Archive · 8 Aug 2026
Binance affiliates sue RedotPay founders over alleged $470M fraud
Two companies that help people use digital money are in a big fight.
Binance runs the world's largest crypto exchange, where people buy and sell digital money.
RedotPay makes cards that let people spend digital money at regular shops.
The two companies made a deal to work together and share customers.
Binance says RedotPay broke the deal by secretly taking its customers and using its money in ways that were not allowed.
Binance says this cost it about $472 million.
RedotPay says it did nothing wrong and will defend itself in court.
Judges in Hong Kong and Singapore will hear both sides and decide what really happened.
RedotPay is growing fast and may sell its shares to the public, so this case comes at an important time for the company.
Binance affiliates Chaintecs Consulting, DistributedTechnologies and Nest Trading sued RedotPay co-founders over alleged fraud in Hong Kong.
Binance claims RedotPay diverted more than 470,000 customers to its own card, causing over $470 million in losses.
The suit alleges Binance Pay funds were used without segregation for RedotPay Card top-ups, breaching a March 2025 agreement.
RedotPay rejected the allegations, saying it will vigorously defend all claims and that the proceedings won't affect operations.
The case comes as RedotPay weighs a $4 billion IPO, with $14 billion in annualized payment volumes and more than 8 million users.
- Who
- Binance's affiliates Chaintecs Consulting Singapore Pte., DistributedTechnologies Ltd and Nest Trading Ltd are suing RedotPay co-founders Chan Wa Choi, Gao Zhangpeng and Yao Chao.
- What
- A fraud lawsuit alleging RedotPay diverted more than 470,000 customers to its own card product and caused over $470 million in losses.
- When
- News of the lawsuit broke on 5 August; Binance says it discovered the alleged conduct since March 2026, with a Singapore hearing set for Friday.
- Where
- The lawsuit was filed in Hong Kong, with a related suit filed by Binance's Chaintecs against RedotPay affiliates in Singapore.
- Why
- Binance alleges RedotPay violated a March 2025 agreement by allowing Binance Pay funds to be used, without segregation, for RedotPay Card top-ups, moving customers away from Binance Card.
Binance
RedotPay
Allegations of agreement breach
Binance
Binance says RedotPay allowed Binance Pay funds to be used, without segregation, for RedotPay Card top-ups and other prohibited uses, breaching the March 2025 agreement.
RedotPay
RedotPay rejects the allegations and says it will respond through the appropriate legal process, vigorously defending all claims.
Impact on valuation and IPO
Binance
Binance alleges the funneling of customers from Binance Card to RedotPay contributed to RedotPay's valuation as it considers a $4 billion IPO.
RedotPay
RedotPay says the legal proceedings have no impact on its day-to-day operations or future operations.
Fairness of the claimed damages
Binance
Binance estimates $472.8 million in losses based on a $925 lifetime value per diverted customer.
RedotPay
RedotPay broadly disputes the claims, saying the proceedings have no impact on it and that it will defend itself in court.
- Claimed losses
- $472.8 million
- Customers allegedly diverted
- Over 470,000
- Estimated value per customer
- $925 lifetime value
- User funds from Binance Pay
- About $304 million
- RedotPay valuation
- $1 billion (late 2025)
- IPO under consideration
- $4 billion
- RedotPay annualized payment volume
- $14 billion
- RedotPay users
- More than 8 million