RedotPay Rejects Binance’s $470M Lawsuit Over Alleged User Poaching

RedotPay has dismissed Binance’s allegations that it improperly diverted hundreds of thousands of users from Binance Pay, saying it will “vigorously defend” itself against the lawsuit seeking nearly $470 million in damages.

In a statement to CoinDesk, the Hong Kong-based stablecoin payment card issuer said it was aware of the legal action and strongly denied the claims. The company added that the allegations against both RedotPay and its co-founders are without merit.

According to reports, Binance affiliates filed the lawsuit accusing RedotPay of redirecting approximately 470,000 Binance customers, resulting in estimated losses of $473 million. Binance alleges it discovered in March 2026 that RedotPay had been allowing Binance Pay funds to be used for unauthorized purposes, including topping up RedotPay prepaid cards without maintaining the required segregation of funds.

A Binance spokesperson declined to discuss the ongoing litigation but stated that the company would use legal channels when necessary to protect its interests.

The legal dispute extends beyond Hong Kong. Binance affiliate Chaintecs has also initiated legal proceedings against RedotPay-related entities in Singapore, where a court hearing is scheduled for Friday.

The conflict stems from a business relationship that began in November 2023, when Binance and RedotPay entered into a commercial partnership. That agreement lasted less than six months after Binance claimed its payment funds had been used to top up RedotPay cards in violation of the arrangement.

The companies later signed a second agreement in March 2025, requiring Binance Pay funds to remain segregated. Under the revised deal, Binance users could convert cryptocurrency to fiat, make in-app transfers, and purchase RedotPay products, but they were prohibited from using Binance Pay to fund RedotPay cards. The agreement also expanded RedotPay’s access to Binance’s payment infrastructure and customer base.

Binance terminated the partnership in April 2026, stating only that the move was part of its routine review of merchant partners.

The lawsuit comes as RedotPay reportedly plans to raise more than $1 billion through a U.S. initial public offering, potentially valuing the stablecoin payments company at around $4 billion.