Binance affiliates sue RedotPay over alleged customer diversion scheme
In brief
- Binance affiliates Nest Trading, Distributed Technologies, and Chaintecs Consulting sued RedotPay founders over customer diversion allegations
- RedotPay allegedly breached March 2025 agreement by funneling Binance Pay customers to its payment card platform
- Binance claims scheme diverted 470,000+ customers and caused approximately $473 million in losses
- RedotPay exploring New York IPO potentially valuing company above $4 billion
The Lawsuit and Allegations
Binance affiliates Nest Trading Ltd., Distributed Technologies Ltd., and Chaintecs Consulting Singapore Pte. launched the legal action against RedotPay and its founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. According to the complaint, RedotPay improperly used Binance Pay to funnel customers onto its own payment card platform in breach of contractual terms.
The core allegation is that the founders violated the March 2025 agreement requiring Binance Pay funds to remain segregated. Instead, the suit claims, RedotPay systematically diverted customer flows to its proprietary payment infrastructure.
Scale of Claimed Damages
Binance affiliates claim the alleged scheme diverted more than 470,000 customers, resulting in approximately $473 million in estimated losses. The figure underscores the scale of this intra-industry dispute. It marks one of the largest legal battles between major crypto entities in recent months.
Timing and IPO Context
The lawsuit arrives as RedotPay explores a New York IPO that could value the company at more than $4 billion. The proposed listing could happen as early as this year, introducing significant regulatory and legal headwinds for the payments firm. The timing of the suit — filed amid IPO preparations — may complicate RedotPay's path to public markets and its valuation discussions with underwriters.
This case highlights ongoing tensions in the crypto payments space over customer access, contractual compliance, and competitive boundaries. How courts adjudicate the segregation and diversion claims could reshape how payment platforms structure partnerships with larger exchanges.
