Binance-linked entities are seeking $472.8 million from crypto payment-card provider RedotPay and its three co-founders in lawsuits filed in Hong Kong and Singapore, alleging that the company diverted hundreds of thousands of former Binance Card users and improperly handled funds routed through Binance Pay.
The complaints name RedotPay founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. They center on cooperation agreements between RedotPay and Binance-linked parties that enabled Binance users to fund RedotPay Cards through Binance Pay. The plaintiffs allege the arrangement helped RedotPay redirect more than 470,000 Binance Card users to its own service, including users affected by Binance Card’s discontinuation in late 2023.
The lawsuits also claim that roughly $304 million in user funds moved to RedotPay through Binance Pay during the partnership. Under a later agreement, the filings allege, RedotPay was required to segregate those funds and could use them only for fiat conversion, in-app transfers, and purchases of RedotPay-branded products. Card top-ups were expressly prohibited, according to the claims.
Binance-linked plaintiffs say RedotPay nonetheless allowed restricted Binance Pay funds to enter its card operation, with some money allegedly used to fund RedotPay Card balances. The $472.8 million demand combines the disputed $304 million in fund flows with claimed losses tied to the alleged diversion of customers.
RedotPay said it would contest the allegations and said the litigation would not affect its day-to-day operations. The company declined to discuss the substance of the claims while the cases remain before the courts.
A partnership that outlasted Binance Card
RedotPay’s connection with Binance Pay began in November 2023 and was publicly announced on Dec. 15 that year. The integration allowed users to access a RedotPay mini program and add funds to their RedotPay Cards with assets held in Binance accounts.
The commercial appeal was straightforward: Binance users could move crypto value from an exchange account into a payment-card product without navigating a separate deposit process. For RedotPay, the channel offered access to a large pool of users familiar with cryptocurrency payments.
The relationship developed shortly after Binance Card was phased out in late 2023. The plaintiffs argue that RedotPay and its founders used the partnership to attract former Binance Card customers, then converted that access into a competing card business.
An initial cooperation agreement ended about six months after the partnership began, following disagreements related to top-ups, according to the court filings summarized in the supplied material. The parties then entered a new agreement in March 2025, which imposed more specific restrictions on the handling of funds received through Binance Pay.
That later agreement is likely to become central to the dispute. The plaintiffs allege that its segregation requirements were designed to prevent Binance Pay balances from being used as a source of liquidity for RedotPay’s card operation. Whether the funds were handled in line with those contractual limits will shape both potential damages and the credibility of the customer-diversion claims.
The Binance Pay channel was closed in March 2026, according to the allegations.
RedotPay’s fast expansion faces legal scrutiny
The lawsuits arrive as RedotPay has become one of the larger providers in the stablecoin-linked payment-card market. Founded in April 2023, the company offers payment cards, a multi-currency wallet, fiat conversion and international transfers using stablecoins.
RedotPay reports that it has surpassed 8 million users, processes $14 billion in annual payment volume, and generates about $180 million in annualized revenue. Those are company-reported figures and have not been independently verified in the material provided.
Paymentscan, a blockchain-data platform tracking crypto payment-card activity, recorded about $749 million in total transaction volume across the “U card” segment in July. RedotPay processed roughly $395 million of that volume, representing about 52.8% of the total, Paymentscan data showed. Ether.fi followed with $100 million, or 13.4%, while KAST recorded $89.6 million, or 11.9%.
The figures place RedotPay well ahead of rivals in a segment that has expanded alongside stablecoin use for everyday payments. Yet the litigation puts attention on the source of part of that early customer base and on the operational controls used as the company scaled.
The allegations do not establish liability. They do, though, bring detailed claims about RedotPay’s user acquisition and funds handling into public court proceedings in two major Asian financial centers.
Funding and ipo plans face a new complication
RedotPay raised a reported $194 million across three funding rounds last year. In March, it announced a $40 million Series A round while reporting more than 3 million users. A $47 million strategic financing followed in September, when the company said it had more than 5 million users and a valuation above $1 billion.
The company then announced a $107 million Series B financing in December.
Those rounds supported an ambitious growth narrative, and RedotPay has been preparing for a potential U.S. public listing. The company has discussed a New York ipo as early as this year, with a reported target valuation above $4 billion, a possible fundraising target exceeding $1 billion, and talks around a financing of up to $150 million.
The legal claims could complicate those preparations by forcing greater scrutiny of financial controls, customer-acquisition practices and potential contingent liabilities. A $472.8 million claim is material even for a business seeking a multibillion-dollar valuation, particularly when the dispute concerns core payment flows rather than a peripheral commercial disagreement.
RedotPay has also reported management turnover over the past year, including at least five senior employees whose tenures lasted less than 12 months, two changes in the compliance lead role, and a period in which listing preparations advanced without a chief financial officer. Those changes do not prove shortcomings, but they add to the operational questions that accompany a rapidly growing payments company moving toward public markets.
The cases could end in a judgment, settlement, dismissal, or a revised commercial arrangement. For now, the dispute places RedotPay’s relationship with Binance-linked entities at the center of its path toward a prospective listing, with the courts set to examine whether the partnership that accelerated its expansion also breached the terms under which it operated.
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