Binance has filed suit against Hong Kong-based stablecoin payments firm RedotPay and its founders, alleging the company improperly diverted roughly 470,000 customers away from the exchange and caused nearly $473 million in damages. The lawsuit was filed by Binance affiliates in Hong Kong, with a related suit from Binance's Chaintecs division filed in Singapore, where a hearing is scheduled for Friday.
RedotPay pushed back forcefully. “The Company rejects the unfounded allegations made against it and its co-founders,” the firm said, adding that it intends to defend itself vigorously against the claims.
What Binance Is Alleging
At the center of the dispute is how RedotPay handled funds tied to Binance Pay, the exchange's payments product. Binance alleges that RedotPay violated the terms of their commercial agreement by allowing Binance Pay funds to be used, without proper segregation, for purposes prohibited under that agreement — including topping up RedotPay-branded cards. Binance says this misuse began in March 2026.
The commercial relationship between the two companies dates back further than the alleged misconduct. An initial agreement ran from November 2023 to May 2024, followed by a second agreement covering March 2025 through April 2026 — the period during which Binance says the improper fund use occurred.
A High-Stakes Moment for RedotPay
The timing is notable. RedotPay, which describes itself as the world's largest stablecoin payment card issuer, has spent much of 2026 laying groundwork for a U.S. listing. The company was reported earlier this year to be working with major banks including JPMorgan, Goldman Sachs and Jefferies on a potential New York IPO, with valuation estimates from outside reports ranging from roughly $4 billion up toward $10 billion depending on the source and timing of the discussions. RedotPay has said it serves more than six million users across upwards of 100 markets, with annualized payment volume exceeding $10 billion.
A protracted legal fight with one of the industry's largest exchanges, playing out in both Hong Kong and Singapore courts simultaneously, adds a layer of uncertainty to that listing process just as the company has been courting institutional underwriters.
What Comes Next
Neither party has disclosed a timeline for resolution. The Singapore hearing this week, brought by Binance's Chaintecs division, may offer the first indication of how aggressively the exchange intends to pursue the dispute across jurisdictions, while RedotPay's public rejection of the allegations signals the case is unlikely to settle quietly in the near term.
