Binance Sues RedotPay for $473M Over Alleged User Poaching Scheme

Binance isn't messing about. Three Binance-affiliated entities have filed suit against RedotPay in Hong Kong, claiming the crypto payments firm pulled off a brazen customer-theft operation that cost them nearly half a billion dollars.

The allegations are straightforward: RedotPay co-founders Gao Zhangpeng, Chan Wa Choi and Yao Chao violated a deal they'd signed. Binance Holdings-affiliated outfits Nest Trading Ltd., DistributedTechnologies Ltd. and Chaintecs Consulting Singapore Pte say RedotPay allowed Binance Pay funds to be used for things explicitly banned under their agreement—specifically, topping up RedotPay's prepaid cards.

The numbers are wild. Binance discovered the breach in March 2026 and claims over 470,000 users got diverted to RedotPay. Valuing each customer at $925 in lifetime revenue, they're asking for $472.8 million. On top of that, Binance reckons roughly $304 million in actual user funds got funnelled into RedotPay's ecosystem without permission.

This didn't come out of nowhere. The two firms signed their first agreement back in November 2023. That fell apart within six months for almost identical reasons—Binance Pay money was being used to load RedotPay cards. In March 2025, they tried again with a second deal that was supposed to keep the funds separate. Under that arrangement, Binance customers could convert crypto to fiat on RedotPay, do in-app transfers, and buy RedotPay merchandise. Cards, though? Off limits. Binance killed the deal in April 2026, citing a "merchant partner review."

RedotPay's response was measured. They posted a statement saying they're "confident in our legal position" and will defend themselves "vigorously." Not much else—the matter's in court, so they're staying quiet on the details.

The timing is awkward. RedotPay's gearing up for a US IPO that could raise over $1 billion and value the company at more than $4 billion, according to Bloomberg. This lawsuit throws a wrench in that plan. Binance's argument that the diverted users inflated RedotPay's valuation could make for some uncomfortable conversations with potential investors doing due diligence.

For context, RedotPay isn't small. They claim a global user base of over 8 million, process $14 billion in annualised payment volume, and generate $180 million in annualised revenue. That's real scale. But scale built partly on poached users looks messier when you're pitching to institutional investors.

There's also a parallel suit filed by Binance's Chaintecs affiliate in Singapore, with a hearing scheduled for Friday, August 7, 2026. A Binance spokesperson said the company doesn't comment on active litigation but will "use courts and other forums where necessary to pursue its claims."

This is the sort of fight that matters. It's not vague claims or reputation damage—it's concrete allegations of contract breach, customer diversion, and misuse of funds. The outcome could reshape how these payment companies handle partnerships. For RedotPay, it's an IPO-shaped problem.

Source & further reading:

• Crypto firm RedotPay says it will defend itself ‘vigorously’ against Binance lawsuit — CoinDesk
• Crypto's campaign efforts see rare loss, but crypto roster in Congress likely to grow — CoinDesk
• Coldcard exploit could boost demand for regulated bitcoin exposure, analysts say — CoinDesk
• Crypto Long & Short: Putting the bitcoin sizing question to the test — CoinDesk
• Strategy’s STRC rebounds 30% as company builds cash reserve, bitcoin price stabilizes — CoinDesk