Binance sues RedotPay over alleged customer diversion and $470 million in losses
The Hong Kong stablecoin payments company rejects Binance's claims and says it will defend itself as both firms prepare for hearings in Singapore and Hong Kong.
By The Third AnglePublished 4 min read
Hong Kong skyline, used as an illustration for a dispute involving a Hong Kong-based company; it does not show RedotPay or Binance offices. Photo: Robster1983 / Wikimedia Commons · CC0 1.0
Binance has sued Hong Kong-based RedotPay and its founders, alleging that the stablecoin payments company diverted about 470,000 Binance users and caused nearly $473 million in losses. The claims described in the lawsuit coverage center on how Binance Pay funds were used to top up RedotPay cards.
RedotPay rejected the allegations as unfounded and said it would defend itself “vigorously.” Binance did not comment on the litigation, but a spokesperson said the company would use courts and other forums when necessary. The competing accounts are allegations and responses, not findings that either side has already proved in court.
The dispute is about payment rails
The disagreement grew out of a commercial relationship that began in November 2023. A later agreement, signed in March 2025, allowed Binance customers to use Binance Pay funds on RedotPay for crypto-to-fiat conversion, in-app transfers and purchases, while requiring the funds to stay separate from the company's prepaid-card top-ups.
Binance alleges RedotPay allowed or encouraged the prohibited use of its funds. That distinction matters because the case is not simply a fight between two card brands: it concerns segregation, customer access and whether a partner used one company's payment network to feed a competing product.
Two courts, one commercial break
Binance ended its agreement with RedotPay in April 2026, describing the decision as part of a merchant-partner review. Binance affiliate Chaintecs has also filed a related suit against RedotPay affiliates in Singapore, where a hearing is scheduled for Friday according to the Singapore Courts hearing list.
The Hong Kong action and the Singapore case could expose different parts of the relationship, including the contractual rules for payment funds and the responsibilities of each affiliate. Early hearings may focus on jurisdiction, evidence and interim procedure rather than the full merits of the losses claim.
A high-growth company facing a high-stakes test
RedotPay describes itself as the world's largest stablecoin payment-card issuer and is planning a U.S. initial public offering that could raise more than $1 billion at a potential $4 billion valuation. Those ambitions put the lawsuit alongside a broader question about the controls needed when stablecoin wallets, exchange balances and card networks meet.
The case will turn on the contracts, transaction records and customer flows rather than on either company's public description of the relationship. Until a court tests those materials, the defensible conclusion is narrower: a major exchange and a fast-growing stablecoin payments company are fighting over the boundaries of a partnership that once gave Binance users access to RedotPay's cards.
