Binance has escalated a commercial dispute with Hong Kong-based RedotPay into parallel litigation across two jurisdictions, seeking nearly half a billion dollars in damages for what it describes as a systematic diversion of its user base.
The exchange's affiliates filed suit in Hong Kong this week claiming RedotPay poached approximately 470,000 Binance customers through improper use of Binance Pay funds. According to the filing cited by Bloomberg, the scheme caused losses of roughly $473 million. Binance's Chaintecs subsidiary simultaneously initiated proceedings against RedotPay affiliates in Singapore, where a hearing is scheduled for Friday on the judiciary's docket.
What the agreements actually required
The relationship began with a commercial agreement in November 2023 that Binance terminated less than six months later after alleging its funds were being used to top up RedotPay's prepaid cards. A second agreement took effect in March 2025 and explicitly required Binance Pay funds to remain segregated. Under those terms, Binance customers could use Binance Pay on RedotPay to convert crypto to fiat, make in-app transfers, and purchase RedotPay-branded goods — but not to fund RedotPay cards. The agreement also granted RedotPay access to Binance's user base and distributed Binance's payment services across RedotPay's network.
Binance ended that second arrangement in April 2026, stating only that the decision was part of a routine merchant partner review.
The procedural path ahead
The Hong Kong filing opens a civil proceeding in which Binance must prove both the diversion and the quantum of damages. RedotPay's statement to CoinDesk rejects the allegations as unfounded and commits to a vigorous defense. In Singapore, the Chaintecs action will face an initial hearing Friday that could set timetables for discovery and evidence exchange. Both cases will turn on contract interpretation — specifically whether RedotPay's use of Binance Pay funds for card top-ups breached the segregation clause — and on causation linking any breach to the claimed $473 million loss figure.
| Jurisdiction | Plaintiff | Status | Next Step |
|---|---|---|---|
| --- | --- | --- | --- |
| Hong Kong | Binance affiliates | Filed | Pleadings exchange |
|---|---|---|---|
| Singapore | Chaintecs (Binance) | Hearing scheduled Friday | Case management directions |
Market context and the IPO overhang
RedotPay has positioned itself as the world's largest stablecoin payment card issuer and was reported in February to be preparing a U.S. initial public offering targeting more than $1 billion at a potential $4 billion valuation. The litigation introduces a material contingent liability that underwriters will scrutinize in any S-1 filing. Binance, for its part, has not commented on the specifics of the litigation beyond a spokesperson's statement that the exchange will "use courts and other forums to pursue what is right" where necessary.
The dispute arrives as major exchanges tighten oversight of payment partners and stablecoin integrations. Binance's merchant review process, cited as the basis for the April termination, reflects a broader industry shift toward stricter counterparty controls after a year of high-profile payment failures.
Forward-looking watchpoints
Three dates frame the near-term trajectory. The Singapore hearing on Friday will clarify whether Chintecs seeks injunctive relief or proceeds on damages alone. In Hong Kong, the first case management conference typically follows within 60 days of filing and will set discovery deadlines. Any RedotPay IPO filing with the SEC would require disclosure of both proceedings as material legal contingencies — a disclosure that could affect pricing or timing.