Binance Files $470 Million ‘User Poaching’ Lawsuit Against RedotPay: Allegations of 470,000 Users

Binance has filed a massive $470 million lawsuit against RedotPay, alleging that the company improperly diverted 470,000 users to its own platform.

Binance, the world’s largest cryptocurrency exchange, has launched a comprehensive legal battle against Hong Kong-based stablecoin payment card provider RedotPay. The company claims that RedotPay caused approximately $473 million in damages by misappropriating Binance Pay funds and poaching nearly half a million customers. RedotPay, meanwhile, has publicly described these accusations as “baseless” and announced it will vigorously defend itself in court.

The business relationship between the two companies began in November 2023, but reached an impasse after Binance discovered the misuse of funds. Allegedly, RedotPay used exchange users’ funds to top up its own prepaid cards without segregation. This continued despite a second agreement signed in March 2025 that required funds to be kept separate. Following these violations, Binance fully terminated the partnership in April 2026.

RedotPay’s $4 Billion IPO Plans at Risk

This lawsuit comes at a critical time for RedotPay. The company was aiming for an initial public offering (IPO) in the US with a target of over $1 billion at a valuation of approximately $4 billion. However, the heavy accusations from Binance and the hearings scheduled for Friday in Singapore courts could pose a serious obstacle to this major financial goal.

While a Binance spokesperson refrained from making detailed comments on the ongoing litigation, they emphasized that they would utilize all legal avenues to seek their rights. The outcome of this case, which has caused a major stir in the crypto world, could reshape both the boundaries of institutional partnerships and standards for the protection of user assets. With millions of dollars on the table, the companies’ claims signal just how intense the judicial process will be.