Binance has sued RedotPay and its founders in Hong Kong, alleging the stablecoin payment card issuer diverted approximately 470,000 Binance customers and misused Binance Pay funds in violation of contractual agreements.
The cryptocurrency exchange claims the alleged misconduct caused nearly $473 million in losses. RedotPay, which describes itself as the world’s largest stablecoin payment card issuer, rejected the allegations as unfounded in a statement to CoinDesk on August 5, 2026.
Timeline of the Partnership
Binance and RedotPay entered into their first commercial agreement in November 2023. That partnership ended less than six months later. A second agreement began in March 2025, which required Binance funds to be kept separate and restricted RedotPay’s use of Binance Pay funds to crypto-to-fiat conversion, in-app transfers, and RedotPay-branded goods purchases. The agreement explicitly prohibited card top-ups.
Binance ended the second agreement in April 2026, stating the decision was part of its merchant partner review.
Alleged Misuse of Funds
According to Binance’s filing, reviewed by Bloomberg, the exchange discovered the alleged misuse in March 2026. “Since March 2026, the Binance Group has discovered that RedotPay Group had been allowing and encouraging Binance Pay funds to be used, without segregation, for the prohibited use within RedotPay, including card top-ups for RedotPay Card,” the filing stated.
Binance did not specify in its public statement whether the $473 million figure represents claimed damages or actual losses incurred.
RedotPay’s Response
RedotPay stated: “RedotPay is aware of legal proceedings initiated by Binance and will vigorously defend all claims. The Company rejects the unfounded allegations made against it and its co-founders.”
The company did not address the specific allegation regarding misuse of Binance Pay funds for card top-ups in its statement.
Broader Legal Action
Binance Chaintecs, a Binance affiliate, has also filed a separate suit against RedotPay affiliates in Singapore. A hearing in that case is scheduled for Friday, though the specific date was not disclosed.
A Binance spokesperson told CoinDesk: “While Binance does not comment on ongoing litigation, where necessary we will use courts and other forums to pursue what is right.”
RedotPay’s IPO Plans
RedotPay is planning a U.S. initial public offering with a minimum valuation of $1 billion and a potential valuation of $4 billion. The litigation comes as the company pursues its public market entry.
