Crypto
Home›Crypto›Regulation›RedotPay vows to defend itself in Binance lawsuit over…
RedotPay vows to defend itself in Binance lawsuit over alleged user diversion
Binance alleges RedotPay diverted about 470,000 Binance customers and claims nearly $473 million in losses.
Binance has sued Hong Kong based stablecoin payments firm RedotPay and its founders, alleging the company diverted about 470,000 Binance customers and caused nearly $473 million in losses to the exchange, according to CoinDesk. RedotPay denies the allegations and says it will fight the case “vigorously.”
CoinDesk reports that RedotPay describes itself as the world’s largest stablecoin payment card issuer and rejects Binance’s claims as unfounded, including an allegation that RedotPay improperly used Binance Pay funds to top up its own prepaid cards against contractual agreements.
Binance’s filing, as summarized by CoinDesk, says the Binance Group discovered since March 2026 that RedotPay was allowing and encouraging Binance Pay funds to be used without segregation for prohibited purposes, including card top ups for the RedotPay Card. Binance also told CoinDesk that when necessary it will use courts and other forums to pursue what it says is right.
CoinDesk adds that Binance Chaintecs has filed another suit against RedotPay affiliates in Singapore, where a hearing is scheduled for Friday, according to the Singapore Courts hearing list. RedotPay is also planning a U.S. IPO of more than $1 billion, with Binance and RedotPay having entered a commercial agreement in November 2023 that ended in under six months, following Binance’s allegations.