A legal battle is brewing between Binance and one of the biggest names in crypto payments. The Binance lawsuit RedotPay dispute centers on claims that hundreds of thousands of users were quietly steered away from Binance and onto a rival platform, allegedly costing the exchange hundreds of millions of dollars in the process.
Summary
Key takeaways
- Binance-affiliated entities Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore have filed a lawsuit against RedotPay in Hong Kong.
- The suit accuses RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao of diverting more than 470,000 Binance users to their own platform.
- Binance claims the alleged diversion caused $472.8 million in losses.
- RedotPay denies the allegations and says it will defend itself through the proper legal channels.
- A related lawsuit filed by Chaintecs Consulting Singapore against RedotPay affiliates in Singapore has a hearing scheduled for Friday.
Binance Affiliates Sue RedotPay in Hong Kong
Three companies tied to Binance have taken RedotPay’s leadership to court, accusing them of breaching a business agreement. According to Bloomberg, Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore filed the lawsuit in Hong Kong, naming RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao as defendants.
Parties Involved in the Lawsuit
The plaintiffs are all entities connected to Binance, the world’s largest crypto exchange by trading volume. RedotPay, meanwhile, has built a reputation as the largest crypto card company, letting users spend digital assets through cards linked to platforms like Visa and Mastercard networks. That positioning is part of why this case matters: it pits two major players in the crypto payments space against each other, with one accusing the other of poaching its customer base through improper means.
Core Allegations Against RedotPay Co-founders
At the heart of the case is a claim that Gao Zhangpeng, Chan Wa Choi, and Yao Chao broke the terms of an existing agreement with the Binance-linked entities. The lawsuit alleges the trio diverted more than 470,000 Binance users toward RedotPay’s own services, a move the plaintiffs argue directly undercut Binance’s business and violated the terms both sides had previously agreed to.
Financial Impact and Allegations of User Diversion
Binance is seeking compensation for what it describes as a massive financial hit tied to the alleged scheme. The filing puts the damages at $472.8 million, a figure the plaintiffs attribute directly to the loss of hundreds of thousands of users who allegedly moved to RedotPay instead of staying within the Binance ecosystem.
Alleged Losses to Binance
That $472.8 million figure represents Binance’s own estimate of the damage caused by the alleged user diversion, according to the lawsuit. The exact methodology behind the calculation hasn’t been detailed publicly, and the number reflects one side’s allegations rather than an independently verified sum.
Scale of User Diversion in the Crypto Card Market
Losing more than 470,000 users to a competitor is no small matter, even for an exchange as large as Binance. The scale of the alleged diversion underscores just how competitive the crypto card sector has become, with companies fighting hard to lock in users who want to spend their crypto holdings in everyday transactions. This is one of the “why it matters” moments in the story: user acquisition in crypto payments isn’t just about growth metrics anymore — it’s now the subject of formal legal disputes with nine-figure price tags attached.
RedotPay’s Response and Legal Defense
RedotPay isn’t backing down from the claims. The company has firmly denied the allegations laid out in the Hong Kong lawsuit and says it intends to fight the case through the appropriate legal process.
Denial of Allegations
According to Bloomberg’s reporting, RedotPay rejected the accusations of wrongdoing outright, pushing back on the narrative that its co-founders engineered a scheme to pull users away from Binance in breach of any agreement.
Intended Legal Defense Approach
RedotPay has signaled it plans to respond through formal legal channels rather than settle or concede to the claims. That sets up what could be a drawn-out legal fight, particularly given that a second, related case is already unfolding in a different jurisdiction.
Additional Lawsuit and Hearing in Singapore
The Hong Kong case isn’t the only front in this legal dispute. Chaintecs Consulting Singapore, one of the same Binance-affiliated entities named in the Hong Kong filing, has also brought a separate lawsuit against RedotPay affiliates in Singapore.
Chaintecs Consulting Singapore’s Suit Against RedotPay Affiliates
This parallel legal action expands the scope of the conflict beyond a single courtroom, suggesting Binance-linked entities are pursuing RedotPay on multiple regulatory fronts simultaneously. It’s a strategic move that could increase pressure on RedotPay’s leadership as they now face overlapping legal proceedings in two separate jurisdictions.
Scheduled Hearing Details
A hearing in the Singapore case is scheduled for Friday, according to the report. That hearing could offer the first real signal of how the courts plan to handle the broader dispute, even as the Hong Kong lawsuit runs on its own separate timeline.
This dispute lands at a moment when crypto card issuers are competing aggressively for market share, and it raises a broader question worth watching: how far can exchanges go in protecting their user base before disputes like this one become the norm across the industry rather than the exception?
FAQ
Who filed the lawsuit against RedotPay?
Binance-affiliated entities Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore filed the lawsuit.
What is RedotPay accused of in the lawsuit?
RedotPay is accused of breaching an agreement by diverting over 470,000 Binance users to its platform.
How much in losses does Binance claim to have suffered?
Binance alleges it suffered $472.8 million in losses due to the user diversion.
What has RedotPay’s response been to the allegations?
RedotPay denies the allegations and plans to defend itself legally.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
