Binance claims RedotPay lured customers away from the exchange in a lawsuit filed in Hong Kong.
By Olivier Acuna|Edited by Shaurya Malwa, Nikhilesh De Aug 5, 2026, 9:40 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Binance alleges RedotPay diverted 470,000 users, which it deems a significant breach of trust. RedotPay denies these allegations. (Sasun Bughdaryan/Unsplash)SummaryShow- Binance has initiated a lawsuit against RedotPay and its founders, claiming the company redirected about 470,000 users and incurred nearly $473 million in damages to the exchange.
- RedotPay, which identifies itself as the leading issuer of stablecoin payment cards globally and is gearing up for a U.S. IPO exceeding $1 billion, has dismissed the accusations as baseless and pledged to defend itself "vigorously."
- According to Binance, RedotPay misappropriated Binance Pay funds to recharge its own prepaid cards in violation of their contractual agreements.
RedotPay, claiming to be the largest issuer of stablecoin payment cards worldwide, announced its intention to “vigorously” contest a lawsuit from Binance seeking $470 million for allegedly luring away 470,000 of its users.
In an official statement sent to CoinDesk, RedotPay said, “The company is aware of the legal actions initiated by Binance and will vigorously defend against all claims.” They further stated, “The company rejects the unfounded allegations made against it and its co-founders.”
The lawsuit, filed by Binance affiliates against the founders of the Hong Kong-based stablecoin payments firm, accuses them of diverting nearly half a million Binance customers, leading to losses of approximately $473 million, as reported by Bloomberg.
Binance claims that since March 2026, it discovered that RedotPay had been permitting and promoting the use of Binance Pay funds for unauthorized purposes, including topping up RedotPay cards, contrary to their agreements, according to the filing cited by Bloomberg.
A Binance spokesperson stated, “While Binance does not comment on ongoing litigation, we will pursue what is right through courts and other forums as necessary,” in an email to CoinDesk.
In addition, Binance's Chaintecs has filed another lawsuit against RedotPay affiliates in Singapore, with a hearing scheduled for Friday, as noted on the Singapore Courts' hearing list.
Binance and RedotPay, which are planning a U.S. IPO to raise over $1 billion at a projected valuation of $4 billion, first established a commercial relationship in November 2023, according to Bloomberg's report. This agreement was terminated less than six months later after Binance accused RedotPay of misusing its funds for card top-ups.
A second agreement was made in March 2025, which mandated that Binance funds be kept separate. Under this arrangement, Binance users could utilize Binance Pay funds through RedotPay for converting crypto to fiat, making in-app transfers, and purchasing RedotPay-branded products, but not for topping up RedotPay cards. This deal also provided RedotPay with access to Binance users and made Binance's payment services available across its network. Binance terminated the agreement with RedotPay in April 2026, stating that the decision was part of its review of merchant partners.
BinanceStablecoinsLatest Crypto News- 1Crypto's campaign efforts see rare loss, but crypto roster in Congress likely to grow3 hours ago
- 2Coldcard exploit could boost demand for regulated bitcoin exposure, analysts say6 hours ago
- 3Crypto Long & Short: Putting the bitcoin sizing question to the test6 hours ago
- 4Strategy’s STRC rebounds 30% as company builds cash reserve, bitcoin price stabilizes7 hours ago
- 5Nomura’s Laser Digital backs ZIGChain for onchain private credit push in UAE8 hours ago
- 6Crypto may have institutionalized, but it still trades like a rumor mill9 hours ago
- 7Ondo Finance hires former Blockchain.com CFO Adam Schlisman9 hours ago
- 8Galaxy Digital shares slip 5% after second-quarter results9 hours ago
- 9AI agent token once worth $2.4 billion ends with founder calling it dead9 hours ago
- 10SpaceX extends decline to 11% on lockup expiration and capex spending fears9 hours ago
The Evolution of the Crypto CEX Landscape: A Case Study on Binance
The Evolution of the Crypto CEX Landscape: A Case Study on Binance
Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.
By CoinDesk ResearchJun 29, 2026Commissioned byBinanceBinance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.
Why it matters:
Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.
View Full ReportMore From Finance