Binance seeks $472.8 million from RedotPay’s founders, alleging 470,000 users were diverted through unauthorized Binance Pay transactions, fueling a major legal battle.
Binance Targets RedotPay in Court
Binance has launched a high-profile legal battle against the founders of RedotPay, seeking $472.8 million in damages over allegations that the fintech company improperly redirected users from Binance’s payment ecosystem. The lawsuit, filed in Hong Kong by Binance-affiliated entities, claims that more than 470,000 users were diverted through an unauthorized payment mechanism involving Binance Pay.
According to the court filing, the dispute centers on RedotPay’s handling of customer funds used to top up its payment cards. Binance alleges the company allowed users to fund RedotPay cards directly through Binance Pay without maintaining the required segregation of customer assets. The exchange argues that this practice violated contractual agreements and ultimately weakened adoption of Binance’s own payment products.
Binance claims it identified the disputed activity after March 2026 before permanently shutting down the payment channel on April 3. Court documents estimate that approximately $304 million moved through the disputed system. The exchange calculated its damages by assigning an estimated lifetime value of $925 to each allegedly diverted customer.
RedotPay has denied all allegations, stating that it is confident in its legal position and intends to vigorously defend itself. The company also emphasized that the lawsuit has not disrupted its day-to-day business operations.
Partnership History Faces Scrutiny
The legal dispute has drawn attention because it follows an earlier breakdown between the two companies involving a similar payment arrangement.
Bloomberg reported that Binance and RedotPay initially partnered in November 2023, but that relationship ended within six months over concerns surrounding the same top-up process. A new agreement signed in March 2025 reportedly introduced safeguards intended to keep customer funds separate.
However, Binance now argues those safeguards were not properly followed.
Bloomberg’s review of RedotPay’s previous fundraising materials also indicated that direct Binance Pay deposits were presented as a feature designed to accelerate customer growth. That marketing approach now sits at the center of Binance’s legal complaint.
Key figures in the dispute include:
- $472.8 million in damages sought by Binance.
- More than 470,000 users allegedly diverted.
- Approximately $304 million processed through the disputed payment channel.
- Estimated customer lifetime value of $925 per user.
Growth Story Meets Legal Challenge
The lawsuit arrives during a period of rapid expansion for RedotPay. The company announced a $40 million funding round in March 2025 while reporting more than 3 million users. Later fundraising pushed total financing significantly higher, with RedotPay stating that its customer base surpassed 6 million users and annualized payment volume exceeded $10 billion.
Those growth figures are attracting additional attention because Binance argues a meaningful portion of newly acquired users originated from the disputed Binance Pay integration. If the allegations are proven, the legal proceedings could influence how investors evaluate RedotPay’s historical growth and future valuation.
The timing is particularly notable as reports suggest RedotPay is pursuing a U.S. public listing that could value the company above $4 billion.
While RedotPay recently highlighted the completion of a SOC 2 Type II audit, that certification does not directly address Binance’s contractual allegations. Likewise, many of the company’s reported user and revenue metrics have not yet been independently verified through public regulatory filings.
Ultimately, the courts in Hong Kong and Singapore will determine whether RedotPay’s expansion resulted primarily from its own product innovation or whether contractual obligations governing Binance Pay were breached. Until those questions are resolved, the lawsuit is likely to remain a significant factor shaping investor sentiment toward one of the cryptocurrency payments sector’s fastest-growing companies.