Binance, a leading global cryptocurrency exchange, claims RedotPay’s actions constitute a massive breach of trust, accusing the Hong Kong-based firm and its founders of diverting nearly half a million Binance customers to a competing platform. This alleged scheme reportedly led to losses of almost $473 million for Binance.
RedotPay, which brands itself as the world’s largest stablecoin payment card issuer, has categorically rejected these allegations. The company, which is reportedly planning a U.S. Initial Public Offering (IPO) exceeding $1 billion, stated in an emailed statement to CoinDesk that it will robustly contest all claims made against it and its co-founders, deeming them “unfounded.”
The core of Binance’s complaint revolves around the alleged improper use of Binance Pay funds. Binance claims RedotPay utilised these funds to top up its own prepaid cards, a practice allegedly in violation of contractual agreements between the two entities. Bloomberg reports that since March 2026, the Binance Group discovered RedotPay was permitting and encouraging the commingling of Binance Pay funds for prohibited uses within RedotPay, specifically card top-ups for the RedotPay Card.
A spokesperson for Binance, while declining to comment on ongoing litigation, emphasised the exchange's commitment to using legal channels to pursue justice. Further complicating matters, Binance’s affiliate, Chaintecs, has also initiated a separate lawsuit against RedotPay affiliates in Singapore, with a hearing scheduled for Friday.
The commercial relationship between Binance and RedotPay, which aspires to a $4 billion valuation upon its potential IPO, began in November 2023. This arrangement, according to Bloomberg's citation of the legal filing, was terminated less than six months later due to Binance’s allegations regarding the misuse of its funds for RedotPay’s prepaid cards.
A subsequent agreement was established in March 2025, which stipulated that Binance funds were to be kept separate. Under this renewed agreement, Binance customers were permitted to utilise Binance Pay funds.
