The Dispute Between Binance and RedotPay: The Whole Story
1. Background of the Cooperation
In March 2025, the two parties signed a commercial agreement: RedotPay would use Binance’s large user base to acquire customers, while Binance would expand the use cases for its own payment services (Binance Pay/Card) by leveraging the RedotPay network—an arrangement that was meant to be mutually beneficial.
2. The Core of the Dispute
Binance accuses RedotPay of violating the terms of the agreement by allowing users to use Binance Pay to pay for RedotPay’s stablecoin top-up cards, instead of isolating funds within Binance’s own cards. As a result, more than 470,000 Binance Card users “switched over” to RedotPay. Binance claims this is RedotPay “poaching” its customers through the cooperation channel.
3. Claim Amount
Binance estimates the lifetime value of each churned user at about $925 and calculates its claim at approximately $472.8 million. In addition to the lawsuit in Hong Kong, there is also a related case in Singapore, which will be heard on Friday, August 7.
4. A Time-Sensitive Factor
RedotPay is preparing for a U.S. stock IPO (valuation may exceed $4 billion, with JPMorgan, Goldman Sachs, and Jefferies involved). Binance believes that the group of users that were “diverted” is itself an important factor in boosting RedotPay’s valuation, which would make the IPO process even more complicated—this is one reason outsiders suspect the timing of the lawsuit.
5. RedotPay’s Response
RedotPay firmly denies the allegations. It says it will “vigorously defend” all claims, that the accusations are “without basis,” and that the matter does not affect day-to-day operations.
One-sentence summary: What was originally a win-win partnership has now turned into Binance accusing RedotPay of poaching customers through the channel and using that to inflate its own IPO valuation; RedotPay denies the claims across the board, and the two sides will face each other in court.
1. Background of the Cooperation
In March 2025, the two parties signed a commercial agreement: RedotPay would use Binance’s large user base to acquire customers, while Binance would expand the use cases for its own payment services (Binance Pay/Card) by leveraging the RedotPay network—an arrangement that was meant to be mutually beneficial.
2. The Core of the Dispute
Binance accuses RedotPay of violating the terms of the agreement by allowing users to use Binance Pay to pay for RedotPay’s stablecoin top-up cards, instead of isolating funds within Binance’s own cards. As a result, more than 470,000 Binance Card users “switched over” to RedotPay. Binance claims this is RedotPay “poaching” its customers through the cooperation channel.
3. Claim Amount
Binance estimates the lifetime value of each churned user at about $925 and calculates its claim at approximately $472.8 million. In addition to the lawsuit in Hong Kong, there is also a related case in Singapore, which will be heard on Friday, August 7.
4. A Time-Sensitive Factor
RedotPay is preparing for a U.S. stock IPO (valuation may exceed $4 billion, with JPMorgan, Goldman Sachs, and Jefferies involved). Binance believes that the group of users that were “diverted” is itself an important factor in boosting RedotPay’s valuation, which would make the IPO process even more complicated—this is one reason outsiders suspect the timing of the lawsuit.
5. RedotPay’s Response
RedotPay firmly denies the allegations. It says it will “vigorously defend” all claims, that the accusations are “without basis,” and that the matter does not affect day-to-day operations.
One-sentence summary: What was originally a win-win partnership has now turned into Binance accusing RedotPay of poaching customers through the channel and using that to inflate its own IPO valuation; RedotPay denies the claims across the board, and the two sides will face each other in court.