Hong Kong court filing accuses stablecoin card firm of breaching a partnership agreement just as it eyes a $1B+ US IPO
A legal dispute between Binance affiliated entities and crypto payments firm RedotPay has escalated into a Hong Kong lawsuit seeking $472.8 million in damages, centered on allegations that hundreds of thousands of users and hundreds of millions of dollars in funds were diverted from Binance’s card program to RedotPay.
The Filing
The suit was brought by three Binance linked entities i.e. Nest Trading Ltd., DistributedTechnologies Ltd., and Chaintecs Consulting Singapore Pte. against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. Bloomberg, which reviewed the court petition, reported that the filing alleges the co-founders violated the terms of an agreement signed last year, with the conduct described in the filing as part of a fraudulent scheme.
The core technical allegation: RedotPay allowed users to top up RedotPay cards directly with Binance Pay funds, without properly segregating that money, in violation of the agreed terms.
A Repeat Dispute
This isn’t the first clash between the two companies over this exact issue. Their first agreement, struck in November 2023, collapsed within six months over nearly identical allegations that Binance Pay funds were being used to load RedotPay’s prepaid cards. A fresh deal was reached in March 2025 with new assurances that customer funds would stay properly segregated, assurances Binance now says were ignored.
The Numbers
| Figure | What it represents |
| 470,000+ | Users Binance alleges were diverted from its Card program to RedotPay |
| $925 | Binance’s estimated lifetime revenue value per diverted user |
| $472.8M | Resulting damages claim |
| $304M | Separate figure: user funds Binance alleges flowed from Binance Pay into RedotPay’s ecosystem |
Wider Legal Front
The dispute isn’t confined to Hong Kong. A related lawsuit filed by Chaintecs Consulting Singapore against RedotPay affiliates in Singapore has a hearing scheduled for Friday, likely the first real signal of how courts intend to handle the broader dispute.
RedotPay’s Response
RedotPay has firmly rejected the claims. A company spokesperson said: “RedotPay is aware of legal proceedings initiated by Binance and will vigorously defend all claims,” adding that operations remain unaffected. The company also pointed to record on-chain spending by its users over the past month and its continued ranking as the leading crypto card program tracked by Paymentscan.
Binance, for its part, has kept its public comments minimal, stating only that it does not comment on active litigation but will use courts and other forums where necessary to pursue its claims.
Why It Matters for the IPO
The timing raises the stakes considerably. RedotPay calls itself the world’s largest stablecoin payment card issuer and is planning a US IPO of more than $1 billion, with a potential valuation above $4 billion, reportedly working with JPMorgan, Goldman Sachs, and Jefferies. The company’s rise includes a $47 million raise last September led by Coinbase Ventures, and a Visa-powered card partnership with StraitsX, this lawsuit is now the first serious challenge to that growth narrative.
The underlying question Hong Kong and Singapore courts will spend months on is whether RedotPay’s rapid rise reflects an independent product succeeding, or one exchange’s user base being pulled out from under it.
The allegations have not been established as fact by any court. This is an ongoing legal matter.