A high-stakes legal battle is brewing in the cryptocurrency world as Hong Kong-based RedotPay, a prominent stablecoin payment card issuer, prepares to ‘vigorously’ defend itself against a massive lawsuit filed by crypto giant Binance. The dispute centers on allegations that RedotPay illicitly diverted nearly half a million Binance customers, resulting in alleged losses nearing $473 million for the exchange.
The Core Allegations: A Breach of Trust and Funds
Binance’s lawsuit, filed in Hong Kong, accuses RedotPay and its founders of a significant breach of trust. The core of the complaint, as detailed in a Bloomberg report, suggests that RedotPay systematically poached approximately 470,000 Binance users. Furthermore, Binance alleges that RedotPay improperly utilized Binance Pay funds to top up its own prepaid cards, a practice explicitly prohibited by their contractual agreements.
RedotPay, which proudly positions itself as the world’s largest stablecoin payment card issuer and is reportedly eyeing a U.S. IPO exceeding $1 billion, has vehemently denied these claims. In an emailed statement to CoinDesk, the firm declared its intention to ‘vigorously defend all claims,’ dismissing the allegations as ‘unfounded’ against both the company and its co-founders.
Unraveling the Commercial Agreements
The contentious relationship between the two crypto entities began with a commercial agreement in November 2023. This initial arrangement, however, dissolved within six months after Binance raised concerns about its funds being used for RedotPay’s prepaid card top-ups.
A subsequent agreement was forged in March 2025, stipulating that Binance funds were to be kept strictly separate. Under this revised pact, Binance customers could leverage Binance Pay on RedotPay for crypto-to-fiat conversions, in-app transfers, and purchases of RedotPay-branded merchandise. Crucially, this agreement explicitly forbade the use of Binance Pay funds for topping up RedotPay cards. It also granted RedotPay access to Binance’s user base and integrated Binance’s payment services across its network.
Binance ultimately terminated this second agreement in April 2026, citing its standard merchant partner review process as the reason, though the ongoing litigation suggests deeper issues.
Parallel Legal Action in Singapore
Adding another layer to the legal saga, Binance’s affiliate, Chaintecs, has also initiated a lawsuit against RedotPay affiliates in Singapore. A hearing for this case is reportedly scheduled, indicating a multi-jurisdictional legal offensive by Binance.
The Stakes: Millions in Dispute, Billions in Valuation
The lawsuit not only involves a staggering $473 million in alleged losses for Binance but also casts a shadow over RedotPay’s ambitious plans for a U.S. IPO, which aims to raise over $1 billion at a potential $4 billion valuation. The outcome of these legal proceedings could have significant repercussions for both companies and the broader stablecoin payment landscape.
While Binance maintains a policy of not commenting on ongoing litigation, a spokesperson confirmed to CoinDesk that the exchange would ‘use courts and other forums to pursue what is right’ where necessary. This statement underscores Binance’s resolve to protect its interests and user base.
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