Binance-affiliated companies filed suit against RedotPay's three co-founders for $472.8 million over a feature RedotPay pitched to investors but Binance claims violated their separation agreement. Users were topping up RedotPay cards directly from Binance accounts, something the two platforms had agreed not to do.

What RedotPay told investors

RedotPay presented the Binance integration as a growth lever in its 2024 Series A pitch materials. Investors saw direct deposits from Binance Pay to RedotPay Card flagged as a way to accelerate user adoption. The company's public announcement mentioned nothing of Binance. Only the private pitch deck did.

The timing reveals the friction. RedotPay and Binance started their first partnership in November 2023. It lasted six months before collapsing over the very top-up issue now at the center of the lawsuit. Both the partnership's failure and the investor pitch landed in 2024.

Growth through the disputed channel

RedotPay signed a replacement deal with Binance in March 2025, explicitly keeping Binance funds separate. That same month, the company closed a $40 million Series A led by Lightspeed, reporting 3 million registered users. By December, a $107 million Series B from Goodwater Capital brought the user base to over 6 million. The company had doubled its footprint while the Binance channel remained open.

Binance calculated roughly 470,000 of those new users came directly from its card. That's approximately one in six accounts added during the nine-month window. Binance values each user at $925 in lifetime worth, putting the total user diversion at around $304 million.

Binance cut the channel on April 3, 2026. RedotPay is now chasing a US public listing valued above $4 billion, with JPMorgan, Goldman Sachs and Jefferies lined up for the offering. The investment banks now hold a filing alleging control failures at the crypto card company. RedotPay announced a SOC 2 Type II audit in July, though the audit's full scope remains undisclosed.

This article covers a legal dispute and business matter. It is informational only and should not be construed as financial or investment advice.