A commercial dispute in crypto payments has broken into the open, with Binance suing RedotPay and seeking $473 million in damages over claims that the company diverted hundreds of thousands of users and misused Binance Pay funds.
RedotPay, which is preparing for an IPO, said it is aware of the legal action and called the allegations groundless. The company said it will defend itself vigorously and protect the reputation of both the business and its founders.
Binance alleges contract breaches and diversion of 470,000 users
According to Bloomberg, several Binance-affiliated companies have filed suit against Hong Kong-based RedotPay and its co-founders. The complaint accuses them of breaching cooperation agreements and steering 470,000 Binance users to RedotPay’s own platform, causing $473 million in losses to Binance.
In the filing, Binance said: “Starting in March 2026, the Binance group discovered that the RedotPay group failed to implement fund segregation and instead tolerated and encouraged users to divert funds from Binance Pay to prohibited programs on the RedotPay platform, including top-ups for RedotPay’s own physical payment cards.”
A Binance spokesperson told CoinDesk: “While we do not comment on ongoing litigation, Binance will absolutely use proper channels, including the courts, to protect its lawful rights and interests when necessary.”
Separate Singapore case is scheduled for Friday
At the same time, Binance subsidiary Chaintecs has filed a lawsuit in Singapore against a RedotPay affiliate. Based on the Singapore court schedule, that case is set to be heard on Friday.
Business relationship began in November 2023 and ended in April 2026
Court documents obtained by Bloomberg show that Binance and RedotPay first entered into a commercial partnership in November 2023. The relationship broke down in less than six months after Binance found that Binance Pay funds had been used to top up RedotPay prepaid cards.
In March 2025, the two sides signed a second cooperation agreement. That deal required Binance funds to be used only for designated purposes and not mixed with other uses. It allowed Binance users to use Binance Pay through RedotPay for crypto-to-fiat conversion, in-app transfers, and purchases of RedotPay-branded products, but explicitly barred the use of those funds for RedotPay card top-ups.
The partnership also gave RedotPay access to Binance’s large user base and allowed it to integrate Binance Pay into its own payment network. Binance ultimately terminated the relationship in April 2026, saying at the time only that the decision was part of a routine review of merchant partners and giving no further explanation.