A major legal dispute has emerged between Binance and crypto payment company RedotPay in 2026. Binance-affiliated companies have initiated legal proceedings against RedotPay's founders in Hong Kong and are seeking approximately $472.8 million in damages.
But what exactly happened, and why did the relationship between the two companies turn into a legal dispute?
How Did the Dispute Start?
Binance and RedotPay previously had a commercial relationship. In December 2023, RedotPay announced an integration with Binance Pay that allowed Binance Pay users to make direct deposits into RedotPay cards.
However, Binance later conducted a review of its merchant partners. On April 3, 2026, Binance discontinued Binance Pay support for RedotPay.
Binance said the decision was part of its ongoing review of merchant partnerships.
The legal dispute became public afterward.
What Is Binance Alleging?
According to Binance-affiliated companies, RedotPay allegedly breached the terms of its commercial agreement with Binance.
Binance claims that RedotPay allowed Binance Pay funds to be used for stablecoin top-ups on RedotPay cards in a way that allegedly went beyond the permitted scope of their agreement.
Binance's legal claim reportedly involves more than 470,000 Binance users who allegedly moved toward RedotPay's card product.
The Binance-affiliated plaintiffs are seeking approximately $472.8 million in damages, with the amount reportedly calculated partly on the estimated lifetime value of affected customers.
It is important to note that these are allegations made as part of ongoing legal proceedings and have not been established as final facts by a court.
What Is RedotPay's Response?
RedotPay has rejected Binance's allegations and said it intends to defend itself through the legal process.
In August 2026, RedotPay told its users and partners that the legal proceedings would not affect its day-to-day operations.
The company also indicated that, because the matter is before the courts, it would not provide extensive public commentary on the specific allegations.
What About the Singapore Proceedings?
The dispute has also involved legal proceedings in Singapore.
In August 2026, the two sides appeared to disagree publicly about the status of the Singapore proceedings.
RedotPay indicated that it expected Binance to discontinue the Singapore proceedings, while Binance stated that its claims remained active and that it had not abandoned them.
This has added another layer to the wider dispute between the companies.
What Is the Core Issue?
At the center of the dispute is the interpretation of the commercial agreement between Binance and RedotPay.
The key questions include:
- What activities were permitted under the agreement?
- How could Binance Pay funds be used?
- Did RedotPay's handling of Binance users and transactions violate the agreement?
- How should any alleged customer diversion or financial loss be calculated?
Binance's position is that RedotPay went beyond the agreed commercial arrangement and diverted Binance users toward its own card product.
RedotPay disputes those allegations and is defending itself through the legal process.
What Happens Next?
The final outcome will depend on the ongoing legal proceedings.
At this stage, neither side's allegations should be treated as a final court finding. The reported $472.8 million figure is the amount being claimed by Binance-affiliated plaintiffs, not an amount that RedotPay has been ordered to pay.
The dispute highlights how important clearly defined terms can be when crypto exchanges, payment platforms, and card providers integrate their services.
For Binance and RedotPay users, the most important question now is how the courts ultimately resolve the contractual and financial claims between the two companies.
Bottom Line
The Binance vs. RedotPay dispute centers on customer diversion, the use of Binance Pay funds, and alleged breaches of a commercial agreement.
Binance-affiliated companies are seeking approximately $472.8 million, while RedotPay has rejected the allegations and is defending itself in court.
The case remains ongoing, so the final legal outcome has yet to be determined.
