Binance-affiliated companies filed a major legal petition against the co-founders of RedotPay on August 5, 2026. The lawsuit seeks financial compensation totaling $472.8 million over the alleged unauthorized diversion of Binance Card customers.
The Hong Kong court petition was initially detailed in a report published by Bloomberg. The corporate entities bringing the suit are Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore, all operating as Binance affiliates.
The petition explicitly names RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao as defendants. The plaintiffs allege that the executive team breached key commercial terms established in their joint agreement.
Court documents state that RedotPay diverted more than 470,000 Binance Card users without authorization. Binance calculated the total damages based on an estimated lifetime customer value of $925 per user.
The lawsuit alleges that RedotPay permitted users to fund RedotPay stablecoin payment cards using Binance Pay. The plaintiffs contend that this specific payment integration operated entirely outside the scope of their binding agreement.
The legal filing asserts that this diverted user base artificially elevated RedotPay’s corporate valuation. This metric is critical as the Hong Kong-based payment entity evaluates launching an initial public offering in public equity markets.
The relationship between the entities originally aimed to facilitate payment options across cryptocurrency card networks. However, plaintiffs claim the defendants exploited system access to redirect customer accounts into their proprietary service ecosystem.
Singapore Judicial Proceedings and Technical Infrastructure
In addition to the Hong Kong lawsuit, Chaintecs initiated a related legal claim in Singapore. The Singapore judicial list reflects a scheduled hearing in Singapore set for August 7, 2026.
RedotPay operates as a cryptocurrency payment company based in Hong Kong. Its technical architecture integrates traditional payment card networks with blockchain infrastructure, enabling consumers to spend digital assets at everyday merchants globally.
This commercial dispute arises following the gradual sunsetting of Binance Card services in several international jurisdictions. That transition prompted the exchange to pursue partnerships with external payment processors to maintain user functionality.
Following the court filing, the defendant firm issued an official RedotPay statement stating that ongoing proceedings will not impact its daily business operations. Management confirmed it will vigorously defend its position against all claims.
RedotPay management noted it will withhold further public comments regarding the core allegations while litigation remains active. The company stated that all contractual matters will be addressed through established judicial channels.
A Binance spokesperson stated that the exchange does not comment on pending legal proceedings. However, the spokesperson emphasized that the company will use court systems whenever necessary to enforce contractual rights.
Judicial authorities in Hong Kong will determine whether the integration of Binance Pay breached contractual limits. The court will also assess whether the lifetime customer valuation methodology supports the damages sought.
The upcoming August 7, 2026 hearing in Singapore represents the initial procedural step in these dual-jurisdiction legal actions. Subsequent judicial decisions will determine financial liability between both crypto entities.
The outcome of both legal actions could impact future commercial integration models across crypto payment providers. Regulatory authorities and industry participants continue to monitor the filings across both legal jurisdictions.
This article is for informational purposes only and does not constitute financial advice.
