RedotPay, a Hong Kong-based stablecoin payment card issuer, has stated it will “vigorously defend” itself against a $470 million lawsuit by Binance, which alleges the company poached 470,000 users and misused Binance funds.
Binance claims RedotPay allowed Binance Pay funds to be used for prohibited purposes, including card top-ups, causing significant financial losses. The exchange alleges the company diverted users and caused losses of “nearly $473 million,” though the figure remains unconfirmed.
RedotPay denied the allegations, calling them “unfounded,” and stated it would reject all claims made against it and its co-founders. The dispute follows a commercial agreement signed in November 2023, which was terminated in April 2026 after a second agreement in March 2025 required Binance funds to be kept separate.
Binance ended its partnership with RedotPay citing a “merchant partner review,” though details of the review remain unspecified. A hearing related to the lawsuit, filed by Binance affiliate Chaintecs in Singapore, is scheduled for an unspecified date.
The outcome of the case could impact RedotPay’s plans for a U.S. IPO, which aim to raise $1 billion and achieve a $4 billion valuation. The legal battle underscores tensions between cryptocurrency firms over user data and fund management practices.
The case highlights broader challenges in the cryptocurrency sector, where disputes over user retention, financial accountability, and regulatory compliance are increasingly common. Both parties have declined to provide further comment beyond their public statements.
Written by Rebecca Shaw
Industry Desk
