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Crypto firm RedotPay says it will defend itself ‘vigorously’ against Binance lawsuit
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- DeepHorus
Crypto payment firm RedotPay said it will "vigorously" defend itself against a lawsuit filed by Binance, which accuses the stablecoin card issuer of poaching 470,000 customers. The legal battle comes as RedotPay plans a U.S. initial public offering of more than $1 billion. Binance affiliates filed the suit in Hong Kong, according to a Bloomberg report.
Binance alleges that RedotPay and its founders caused nearly $473 million in losses by diverting customers from the exchange. RedotPay, which calls itself the world's largest stablecoin payment card issuer, rejected the claims as unfounded in an emailed statement to CoinDesk on Wednesday. The company said it will defend all claims against it and its co-founders.
The two companies first entered a commercial agreement in November 2023, according to court filings cited by Bloomberg. That arrangement ended less than six months later after Binance alleged its funds were used to top up RedotPay's prepaid cards. A second agreement in March 2025 required Binance funds to be kept separate, but only allowed limited uses such as crypto-to-fiat conversions. Binance terminated that agreement in April 2026, citing a merchant partner review.
Binance's Chaintecs affiliate has also filed a lawsuit against RedotPay affiliates in Singapore, with a hearing scheduled Friday. Binance declined to comment on the ongoing litigation but said it will use courts to pursue what is right. RedotPay is facing parallel legal actions in two major financial hubs.
The case underscores the growing tension between major crypto exchanges and payment firms as customer acquisition becomes more competitive. Binance has been expanding beyond spot and derivatives trading into payments, savings, and yield products. RedotPay's planned IPO, reportedly at a $4 billion valuation, could be affected by the lawsuit's outcome.
Both cases are at an early stage, and no rulings have been issued. Industry observers will monitor whether the legal dispute disrupts RedotPay's listing timeline or prompts stricter oversight of merchant partnerships. The outcome may also influence how crypto exchanges protect their user bases and payment infrastructure.
