$473 Million Binance Lawsuit Targets Card Top-Ups RedotPay Pitched to Investors
Binance-affiliated firms are suing RedotPay’s three co-founders for $472.8 million. They say customers topped up RedotPay playing cards with cash from Binance accounts, which the 2 corporations had agreed to maintain aside.
RedotPay pitched that very same top-up function to buyers in 2024. Binance says it was by no means allowed.
The Top-Ups RedotPay Showed Its Investors
Bloomberg reviewed RedotPay’s 2024 Series A pitch supplies. They named the Binance tie-up as a method to “speed up consumer adoption.” The deck flagged direct deposits to RedotPay Card from Binance Pay. Binance now calls that observe banned in its petition.
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RedotPay’s public Series A announcement tells a distinct story. It by no means mentions Binance as soon as. The pitch to buyers was non-public. The press launch was not.
The timing issues too. RedotPay’s first Binance deal started in November 2023. It fell aside inside six months over the identical top-up concern. Both that collapse and the pitch supplies land in 2024.
RedotPay Doubled Its Users While the Channel Stayed Open
RedotPay signed a substitute cope with Binance in March 2025. This one promised to maintain Binance cash separate. That identical month, RedotPay introduced a $40 million spherical led by Lightspeed. It reported over 3 million registered customers.
Nine months later it raised $107 million extra, led by Goodwater Capital. By then it counted greater than 6 million customers. The base had doubled whereas the Binance channel stayed open.
Binance says greater than 470,000 of these customers got here from Binance Card. That is roughly one in six of the customers added throughout that window. The submitting doesn’t say over what interval they moved. Binance values each at $925 in lifetime price.
What the Banks Have to Check
Binance cut the channel off on April 3, 2026. It places the cash that flowed via at roughly $304 million. RedotPay is chasing a US itemizing above $4 billion. JPMorgan, Goldman Sachs and Jefferies are reportedly lined up.
Those banks now maintain a submitting that alleges management failures. RedotPay introduced a SOC 2 Type II audit in July. The report’s scope just isn’t public, so it can’t reply the declare.
One extra determine deserves care. RedotPay’s newest consumer and income numbers come from the corporate, not from any submitting. Paymentscan, the tracker RedotPay cites as impartial, takes its spend knowledge from RedotPay itself.
It verifies solely top-ups on-chain. The dispute is admittedly about who owns customer relationships in payments.
“This continuing has no affect on our day-to-day operations now or sooner or later. We are assured in our authorized place, and are vigorously defending all claims,” RedotPay said in an announcement.
That reply covers the continuing, not the founders. Gao Zhangpeng, Chan Wa Choi and Yao Chao are named personally in Hong Kong. A separate Singapore case names RedotPay associates, with a listening to on Friday.
The court docket will take months. The banks face an easier query. How a lot of the expansion was Binance’s?
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