What to know:
- Binance-affiliated firms sued RedotPay, seeking $472.8 million over alleged user diversion.
- The lawsuit claims more than 470,000 users were redirected in breach of a Binance Pay agreement.
- RedotPay denied the allegations and said it will “vigorously defend all claims.”
RedotPay has been caught in a major legal battle after Binance-affiliated companies sought $472.8 million in damages, alleging the crypto payments platform violated a commercial agreement.
The relationship that helped RedotPay grow rapidly has now turned into a high-profile lawsuit. Companies associated with Binance have sued the crypto payments platform and its co-founders, alleging they breached a commercial agreement involving more than 470,000 users.
According to Bloomberg, citing a Hong Kong court filing, the plaintiffs are seeking $472.8 million in damages.
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What Caused the Lawsuit?
RedotPay and Binance-affiliated companies that began in November 2023. According to Bloomberg, the companies signed a revised agreement in March 2025, requiring Binance Pay funds to remain segregated.
However, the lawsuit alleges that the payments platform continued allowing Binance Pay balances to be used for RedotPay card top-ups outside the agreed terms.
Before the payments platform issued its official response, the lawsuit gained wider attention after Wu Blockchain shared details from the Hong Kong court filing on X, highlighting Binance’s allegations that “more than 470,000 customers” were diverted and that the plaintiffs were seeking “$472.8 million in damages.”
How Did RedotPay Address the Situation?
RedotPay denied the allegations in an official statement titled “Building with Confidence.” The company said the legal proceedings “have no impact on our day-to-day operations now or in the future” and added that it is “vigorously defending all claims.” As the matter is currently before the court,the payments platform said it would not comment further on the allegations.
Also Read: RedotPay Launches Powerful Global Payments With Sui and USDC-Sui Integration in 2026
What Should Readers Watch Next?
The lawsuit follows Binance‘s decision to discontinue Binance Pay support for the crypto payments platform in April 2026 as part of its review of merchant partners.
Binance did not publicly link that decision to the current lawsuit, but it marked another step in the companies’ deteriorating relationship.
With related proceedings also underway in Singapore, the outcome could influence how future partnerships between crypto exchanges and payment providers are structured.
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