Crypto firm RedotPay says it will defend itself ‘vigorously’ against Binance lawsuit
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Summary
Binance has filed a lawsuit against the Hong Kong-based stablecoin payment company RedotPay and its founders, alleging that RedotPay diverted approximately 470,000 Binance users and caused nearly $473 million in losses. Binance claims RedotPay misused Binance Pay funds to top up its own prepaid cards in violation of contractual agreements. RedotPay denies these allegations and stated it will defend itself vigorously against the lawsuit.
Why it matters
This legal dispute involves a large number of users and a significant financial loss, highlighting potential risks in partnerships between crypto exchanges and payment service providers. The lawsuit may impact user trust, business operations, and partnership frameworks within the crypto payment sector. Additionally, the case is unfolding in multiple jurisdictions, which could have broader implications for cross-border crypto services.
Key context
Binance and RedotPay began their partnership with a commercial agreement in November 2023, which ended within six months due to concerns over fund misuse. A second agreement started in March 2025 imposed stricter conditions, including segregation of Binance funds and prohibitions on using those funds to top up RedotPay cards. The partnership ended in April 2026 after Binance reviewed its merchant partnerships. Binance’s Chaintecs has also filed suit against RedotPay affiliates in Singapore, with a hearing scheduled for Friday.
Key numbers and entities
Binance alleges diversion of about 470,000 users and losses near $473 million. RedotPay is described as the world’s largest stablecoin payment card issuer and plans a U.S. IPO exceeding $1 billion with a potential $4 billion valuation. The initial agreement began in November 2023, and the second agreement took effect in March 2025. Binance’s Chaintecs is involved in related litigation in Singapore.
What remains unclear
The source does not flag open questions but indicates ongoing litigation and that Binance has not commented extensively due to the legal process. Details on the final judicial outcome or any settlement remain undeclared.