Binance has taken RedotPay to court in Hong Kong, accusing the stablecoin payments firm of siphoning off roughly 470,000 customers and inflicting nearly $473 million in losses. The crypto exchange alleges that RedotPay improperly diverted Binance Pay funds to top up its own prepaid cards, violating contractual terms.
RedotPay, which positions itself as the world's largest stablecoin payment card issuer and is preparing for a US IPO exceeding $1 billion, flatly rejected the allegations. "The Company rejects the unfounded allegations made against it and its co-founders," RedotPay said in a statement to CoinDesk on Wednesday. "We will vigorously defend all claims."
The core dispute
According to Binance's filing reviewed by Bloomberg, the exchange detected the scheme starting in March 2026. "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," Binance stated in court documents.
The legal pressure extends beyond Hong Kong. Binance's subsidiary Chaintecs filed a separate suit against RedotPay affiliates in Singapore, with a hearing scheduled for Friday. A Binance spokesperson told CoinDesk the exchange "will use courts and other forums to pursue what is right" where necessary, though the company declined to comment further on ongoing litigation.
This article covers legal claims and market disputes. It is not financial advice and should not be treated as investment guidance.
