Three entities linked to Binance have filed a lawsuit in Hong Kong against the co-founders of RedotPay, a crypto card startup, seeking $472.8 million. The suit, brought by Nest Trading, Distributed Technologies, and Chaintecs Consulting Singapore, alleges that RedotPay allowed users to top up its cards with money from Binance accounts — a practice the two companies had agreed to keep separate.
The core allegation
According to the filing, RedotPay's three co-founders — Gao, Lei, and Yao — breached a deal signed in November 2023 that was supposed to keep Binance funds isolated from RedotPay's card system. Binance says the practice was never allowed and was banned. The original agreement fell apart within six months over the same top-up issue. A replacement deal signed in March 2025 again promised to keep the money separate.
Binance cut off the channel on April 3, 2026. By then, roughly $304 million had flowed through it, according to the company.
RedotPay's growth and the Binance connection
RedotPay's pitch to investors leaned heavily on its Binance tie-up. In 2024 Series A materials, the company named the partnership as a way to accelerate user adoption, including direct deposits from Binance Pay. But RedotPay's public Series A announcement never mentioned Binance — a discrepancy the lawsuit highlights.
In March 2025, RedotPay announced a $40 million round led by Lightspeed, reporting over 3 million registered users. Nine months later, it raised $107 million more, led by Goodwater Capital, with over 6 million users. Binance says more than 470,000 of those users came from Binance Card — roughly one in six of the new additions. Binance values each user at $925 in lifetime worth.
RedotPay's response and the road ahead
RedotPay said in a statement: “This proceeding has no impact on our day-to-day operations now or in the future. We are confident in our legal position, and are vigorously defending all claims.”
The company is chasing a U.S. listing above $4 billion, with JPMorgan, Goldman Sachs, and Jefferies reportedly lined up. It announced a SOC 2 Type II audit in July, though the scope was not made public. Its latest user and revenue numbers come from the company itself, not from any filing. Paymentscan, cited as an independent source, takes spend data from RedotPay and verifies only top-ups on-chain.
A separate case in Singapore names RedotPay affiliates. A hearing is set for Friday. The court will take months to rule.
