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RedotPay Fights $470 Million Binance Case

The dispute centers on alleged breaches tied to Binance Pay and claims that users were steered to RedotPay. The separation of customer funds and prepaid cards is also at the heart of the case.

By Luc Vesters
• 2 min read
RedotPay Fights $470 Million Binance Case

Key Takeaways

  • RedotPay says it is strongly defending itself against a $470 million lawsuit from Binance.
  • Binance says RedotPay redirected 470,000 users and broke agreements tied to Binance Pay.
  • The partnership between the two sides had already broken down after disputes over the use and separation of Binance funds.

RedotPay says it is “vigorously” fighting a $470 million (€407 million) lawsuit filed by Binance. At the center of the dispute are allegations that the Hong Kong-based stablecoin payment card issuer steered 470,000 Binance users to its own platform and violated agreements linked to Binance Pay.

Claims Around Binance Pay

Binance says RedotPay and its founders diverted nearly half a million customers to a rival service, causing about $473 million (€409 million) in losses, according to the complaint. In the filing, Binance says it discovered in March 2026 that Binance Pay funds were being used inside RedotPay without being kept separate, including for prohibited activity such as topping up the RedotPay Card.

RedotPay rejects that account. In an email to CoinDesk, the company said it is aware of the lawsuit and will contest every claim. A Binance spokesperson said the exchange generally does not comment on active legal cases, but will use the courts and other available channels when necessary.

Earlier Agreements Had Already Fallen Apart

Bloomberg reports that the two companies first reached a commercial agreement in November 2023. That deal ended in less than six months after Binance said its funds were being used to load RedotPay prepaid cards. A second agreement followed in March 2025, this time with a requirement that Binance funds remain segregated.

Under that later arrangement, Binance customers could use their Binance Pay funds through RedotPay to convert crypto to fiat, send in-app transfers, and buy branded products. They were not allowed to top up RedotPay cards. Binance terminated that agreement in April 2026 as part of a broader review of merchant partners.

Why This Matters

For European crypto readers, the case is a reminder of how fragile partnerships between crypto exchanges and payment products can be, especially when customer flows and funds need to stay clearly separated. RedotPay, founded in April 2023, grew quickly as a Hong Kong fintech focused on stablecoin payments and later attracted funding from major crypto investors. That makes the outcome important not only from a legal standpoint, but also for the business models of companies trying to combine payment cards, stablecoins, and exchange infrastructure. At the same time, the wider market is moving toward more integrated payment rails, such as Visa’s stablecoin platform, where banks, fintechs, and crypto firms can issue, store, and move stablecoins directly within their payment systems.

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