Binance Affiliates Sue RedotPay for $473 Million in Hong Kong Court
A high-stakes legal battle has erupted between two major players in the crypto payments space. Binance-affiliated entities—Nest Trading Ltd., DistributedTechnologies Ltd., and Chaintecs Consulting Singapore Pte—have filed a lawsuit in Hong Kong against RedotPay and its co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. The plaintiffs allege that RedotPay diverted more than 470,000 users from the Binance Card program, seeking nearly $473 million in damages based on a claimed lifetime customer value of $925 per user.
RedotPay’s Forceful Response
RedotPay has pledged to “vigorously defend” all claims. In a statement to CryptoProwl, a company spokesperson emphasized: “RedotPay is aware of legal proceedings initiated by Binance and will vigorously defend all claims. These proceedings have no impact on RedotPay’s day-to-day operations.” The firm rejected the allegations outright and stated it would respond through appropriate legal channels, declining further comment as the matter is now before the court.
Parallel Legal Action in Singapore
The dispute has crossed borders. A related lawsuit was also filed in Singapore, with a hearing reportedly scheduled for Friday, according to judiciary records. This multi-jurisdictional approach signals Binance’s determination to pursue the case aggressively across key Asian financial hubs.
Strong Growth Metrics Amid Legal Turmoil
Despite the litigation, RedotPay reports robust business momentum. The company claims its user base has surged over 33% in six months, reaching more than 8 million customers—up from 6 million in November 2025. RedotPay also asserts it generates approximately $180 million in annualized revenue and processes roughly $14 billion in annualized payment volume. Citing independent data firm Paymentscan, RedotPay describes itself as the largest crypto card program by on-chain volume.
Industry Implications
This lawsuit highlights intensifying competition in the crypto card sector, where user acquisition costs and lifetime value calculations have become critical battlegrounds. The $925 per-user valuation cited by Binance underscores the premium placed on active crypto payment users. For the broader fintech and crypto ecosystem, the case may set precedents on partnership agreements, user data portability, and competitive practices in Web3 financial services.
Frequently Asked Questions
What specific agreement did Binance allege RedotPay breached?
According to the Bloomberg report cited in the lawsuit, Binance affiliates claim RedotPay’s founders breached a commercial agreement by allowing users to fund RedotPay stablecoin payment cards through Binance Pay outside the scope of that agreement. The plaintiffs argue this diverted Binance Card users to a competing product.
How does RedotPay justify its $925 lifetime user valuation defense?
RedotPay has not publicly detailed its valuation methodology, but its claimed metrics—8 million users, $180M annualized revenue, and $14B payment volume—suggest a different unit economics model. The dispute over lifetime value (LTV) calculations will likely be a central technical battleground in court, with both sides employing different assumptions about retention, spend frequency, and margin contribution.
Could this lawsuit affect RedotPay cardholders’ daily transactions?
RedotPay explicitly stated the proceedings have “no impact on day-to-day operations.” Cardholders should experience no disruption to spending, funding, or wallet functions. However, prolonged litigation could affect future product rollouts, partnership negotiations, or investor sentiment if the case escalates or results in significant financial penalties.
