CumberlandBinance alleged RedotPay poached customers from the crypto exchange in a lawsuit filed in Hong Kong.
Crypto firm RedotPay says it will defend itself ‘vigorously’ against Binance lawsuit
Binance alleged RedotPay poached customers from the crypto exchange in a lawsuit filed in Hong Kong.
Binance has sued Hong Kong-based RedotPay and its founders, alleging the firm diverted about 470,000 Binance customers and caused nearly $473 million in losses to the exchange. RedotPay, which calls itself the world’s largest stablecoin payment card issuer and is planning a U.S. IPO of more than $1 billion, has rejected the claims as unfounded and vowed to defend itself “vigorously.” Binance alleged RedotPay improperly used Binance Pay funds to top up its own prepaid cards against contractual agreements.
RedotPay, which describes itself as the world’s largest stablecoin payment card issuer, told CoinDesk Wednesday it will defend itself “vigorously” against a $470 million Binance lawsuit alleging it poached 470,000 users.
“RedotPay is aware of legal proceedings initiated by Binance and will vigorously defend all claims,” the firm said in an emailed statement. “The Company rejects the unfounded allegations made against it and its co-founders.”
Binance affiliates filed a lawsuit against the founders of the Hong Kong-based stablecoin payments company, alleging they diverted nearly half a million Binance customers to the competing platform in a scheme that caused nearly $473 million in losses, according to a Bloomberg report.
“Since March 2026, the Binance Group has discovered that 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 said in the filing, according to Bloomberg.
"While Binance does not comment on ongoing litigation, where necessary we will use courts and other forums to pursue what is right,” a spokesperson told CoinDesk via email.
Binance’s Chaintecs has also filed a suit against RedotPay affiliates in Singapore. A hearing is scheduled Friday, according to the Singapore Courts' hearing list.
Binance and RedotPay, which has plans to raise more than $1 billion in a U.S. initial public offering (IPO) at a potential $4 billion valuation, first entered into a commercial agreement in November 2023, according to Bloomberg, which cited the filing. That arrangement ended less than six months later, after Binance alleged its funds had been used to top up RedotPay’s prepaid cards.
A second agreement followed in March 2025 and required Binance funds to be kept separate. Under that agreement, Binance customers could use Binance Pay funds on RedotPay to convert crypto to fiat currency, make in-app transfers and buy RedotPay-branded goods, but not to top up RedotPay cards. It also gave RedotPay access to Binance users and made Binance’s payment services available across its network. Binance ended the agreement with RedotPay in April 2026, saying only that the decision was part of its merchant partner review.
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The Evolution of the Crypto CEX Landscape: A Case Study on Binance
The Evolution of the Crypto CEX Landscape: A Case Study on Binance
Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.
Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.
Why it matters:
Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.
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