A year ago, RedotPay looked like a convenient partner for Binance — issuing crypto-linked cards that customers could top up straight from Binance Pay. Now the exchange has turned that partner into a defendant, filing lawsuits worth $470 million in Hong Kong and Singapore.
The claim is simple on paper and expensive in practice. Binance says RedotPay used a March 2025 partnership agreement to quietly divert more than 470,000 Binance users toward its own card products, breaching the terms that governed how card top-ups through Binance Pay were supposed to work. Roughly $304 million in customer funds allegedly flowed through that channel. Binance valued each diverted user at $925 in expected lifetime revenue, arriving at a total claim of $472.8 million.
This wasn't the first time the relationship soured. An earlier 2023 agreement collapsed within six months over nearly identical concerns — Binance suspected its payment rails were being used to fund a rival's cards. The March 2025 deal was supposed to fix that, but Binance says the same pattern continued, and it only uncovered the full scale of the diversion in early 2026, terminating the partnership in April.
The timing couldn't be worse for RedotPay. The company, which describes itself as the world's largest stablecoin card issuer with more than 8 million users and $14 billion in annualized payment volume, is preparing a U.S. IPO targeting a valuation above $4 billion and more than $1 billion raised, with JPMorgan, Goldman Sachs and Jefferies already lined up. A half-billion-dollar lawsuit landing right before a listing is not the kind of headline underwriters like to see.
RedotPay has rejected the allegations, saying it will "vigorously defend" itself and that the case won't disrupt daily operations. A hearing in the Singapore case is scheduled for this Friday, so more details on both sides' evidence could surface soon.
