RedotPay Vows Vigorous Defense Against Binance’s $470M Poaching Lawsuit

Woofun AI reports that RedotPay has pledged to "vigorously" defend itself against a lawsuit filed by Binance, which accuses the stablecoin issuer of poaching users. The conflict centers on allegations that RedotPay diverted customers from the exchange, prompting legal action in multiple jurisdictions.

The financial stakes are substantial, with Binance claiming losses of $473 million due to the alleged diversion of 470,000 users. The Hong Kong-based firm’s co-founders are named in the suit, which RedotPay dismisses as "unfounded allegations" targeting both the company and its leadership.

Structurally, the dispute stems from operational violations identified since March 2026, when Binance Group discovered that RedotPay Group allowed Binance Pay funds to be used without segregation. According to Bloomberg, these funds were prohibited from being used for card top-ups via RedotPay Card.

Additionally, Binance’s affiliate Chaintecs has filed a separate suit against RedotPay affiliates in Singapore, with a hearing scheduled for Friday at the Singapore Courts.

Woofun AI data shows RedotPay is planning a U.S. initial public offering (IPO) to raise more than $1 billion, targeting a $4 billion valuation. This ambitious financial trajectory contrasts sharply with the current legal turmoil surrounding its former partnership with the crypto giant.

The partnership timeline reveals a rapid breakdown, beginning with a commercial agreement in November 2023 that ended less than six months later over fund misuse. A second agreement in March 2025 mandated segregation, allowing crypto-to-fiat conversions and in-app transfers but banning card top-ups. Binance terminated this arrangement in April 2026, citing a merchant partner review.