Crypto firm RedotPay says it will defend itself ‘vigorously’ against Binance lawsuit
Binance has initiated legal action against the founders of Hong Kong-based RedotPay, alleging the firm diverted customers and misused funds, resulting in nearly $473 million in losses. RedotPay has denied the allegations and stated it will vigorously defend itself against the claims in court.
Why it matters
This high-stakes litigation highlights the growing friction between major crypto exchanges and their payment partners, potentially impacting RedotPay's planned $4 billion IPO.
“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.
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