Binance affiliates filed suit against the founders of Hong Kong-based RedotPay, seeking $473 million in damages. The lawsuit alleges RedotPay diverted nearly half a million Binance customers to its competing platform and misused Binance Pay funds.
RedotPay, which identifies itself as the world's largest stablecoin payment card issuer, said it will vigorously defend against all claims and rejected the allegations, saying the legal proceedings have no impact on its daily operations.
The dispute stems from a commercial agreement established in November 2023. Less than six months later, Binance alleged RedotPay used Binance funds to top up its own prepaid crypto cards, violating the initial terms.
A second agreement followed in March 2025. That arrangement required Binance funds to be kept separate and restricted their use on RedotPay. Binance Pay users could convert crypto to fiat currency, make in-app transfers and purchase RedotPay-branded goods, but were explicitly prohibited from topping up RedotPay cards.
Despite the new terms, Binance discovered in March 2026 that RedotPay was allegedly encouraging Binance Pay users to direct funds toward prohibited uses, including card top-ups, without proper segregation. Binance claims roughly $304 million in Binance Pay user funds were funneled into RedotPay's ecosystem.
Binance terminated the second agreement in April 2026, citing a merchant partner review. The exchange said it does not comment on ongoing litigation but will use courts and other forums to pursue what it deems right.
Chaintecs, another Binance affiliate, also filed a separate suit against RedotPay affiliates in Singapore. A hearing for that case is scheduled for Friday, Aug. 7, 2026, according to the Singapore Courts hearing list.
RedotPay has publicly announced plans for a U.S. initial public offering, aiming to raise over $1 billion at a potential $4 billion valuation. The legal battle with Binance now hangs directly over those expansion plans.
