Binance-Linked Entities Sue RedotPay for $472.8 Million
According to Bloomberg, Binance-linked entities Nest Trading, Distributed Technologies, and Chaintecs Consulting Singapore have filed a lawsuit in Hong Kong against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao, accusing them of breaching agreements by redirecting over 470,000 users from Binance Card to RedotPay, claiming damages of $472.8 million.
Additionally, Chaintecs has also filed a lawsuit against RedotPay affiliates in Singapore, with a hearing scheduled for Friday; RedotPay previously sought an IPO valuation of about $4 billion, stating that its annualized payment volume currently reaches $14 billion, annualized revenue is $180 million, and the user base exceeds 8 million.
The incident has increased the risk of disputes in the crypto payment sector, with funds shifting from potential IPO targets to those with higher litigation uncertainties. Binance-related entities benefit from legal recourse, putting pressure on RedotPay shareholders and potential investors.
Source: Public Information
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Since its establishment in 2023, RedotPay has rapidly expanded its stablecoin card and cross-border payment business, previously accelerating user growth through collaboration with Binance Pay, and aims to achieve unicorn status after multiple funding rounds by 2025; Binance continues to strategically position its affiliated entities in the payment and card ecosystem to enhance user retention.
In terms of capital pathways, the lawsuit calculates claims based on a user lifetime value of $925, motivated by the desire to reclaim high-value users that were redirected and to hinder competitors' valuation support before their IPO; resources are shifting from commercial cooperation to legal recourse and user ownership disputes, which may affect RedotPay's underwriting and institutional subscription willingness on Wall Street.
Similar cases have shown user acquisition lawsuits following the breakdown of past collaborations in the crypto payment sector, as well as disputes over agreement execution between exchanges and third-party card providers; currently, RedotPay is transitioning from cooperative growth to an independent IPO push while facing backlash from major clients.
Essentially, this reflects a restructuring of the industry chain: payment traffic is migrating from an exchange-dominated closed ecosystem to independent stablecoin card platforms, where the mechanism is that once the cooperation agreements fail to enforce capital isolation and user ownership, the law becomes a tool for redistributing value.
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- Cooperation and traffic ultimately turn into user acquisition disputes.
- Lifetime value calculations determine the ceiling for claims.
- The biggest risks before an IPO often come from early partners.