Three entities affiliated with Binance have filed a lawsuit in Hong Kong court against the co-founders of the payment service RedotPay, accusing them of a āfraudulent schemeā to poach customers.
The core of the claim: under an agreement from March 2025, Binance users could only use RedotPay to convert funds into fiat currency, make internal transfers, and purchase services offered by RedotPay. It was forbidden to top up RedotPay cardsāBinance alleges that RedotPay failed to segregate funds: money from Binance Pay was freely used to top up cards, and the service actively encouraged this practice.
The figures cited in the claim:
- Over 470,000 users switched to RedotPay cards
- $925āthe estimated lifetime value of a single customer, from which Binance calculated the amount of its claim
- Approximately $304 million in user funds, according to the exchange, were transferred from Binance Pay into the RedotPay ecosystem
The most critical factor is timing. RedotPay is preparing for an IPO in the U.S. valued at over $1 billion, with a valuation exceeding $4 billion, involving JPMorgan, Goldman Sachs, and Jefferies. Binance claims that it was precisely the poached user base that inflated this valuation. Another key argument from the exchange: in its Series A presentation from 2024, RedotPay itself promoted to investors the ability to directly top up RedotPay cards using Binance Pay.
This isnāt the first conflict: the initial partnership from November 2023 collapsed within six months due to the same allegations, and the 2025 contract was signed under the promise of segregated funds. Binance Pay was permanently disconnected from RedotPay on April 3, 2026, citing a routine partner review as the reason.
RedotPay intends to defend itself on all counts and states that the lawsuit will not affect the operation of its service. A parallel lawsuit filed by Binance is being considered in Singaporeāwith a hearing scheduled for August 7.