Binance-affiliated companies are demanding $472.8 million from RedotPay, alleging the crypto payments platform violated their commercial agreement by misusing customer funds. The lawsuit, filed in Hong Kong, names over 470,000 users as having been diverted from agreed terms.
The dispute centers on how RedotPay handled Binance Pay balances. When the two parties signed a revised agreement in March 2025, it explicitly required these funds to remain segregated. RedotPay, however, kept allowing customers to use Binance Pay balances for card top-ups outside those terms. That's the core allegation from Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore, the Binance entities pursuing the claim.
RedotPay pushed back hard. In a statement titled "Building with Confidence," the company denied wrongdoing and said the lawsuit has zero impact on daily operations. They're "vigorously defending all claims" but won't discuss specifics while the matter sits in court.
The legal fight comes after Binance already pulled the plug on supporting RedotPay through its Binance Pay service in April 2026. The exchange framed that move as a routine merchant partner review, though the timing suggests the relationship had already fractured. Wu Blockchain surfaced the Hong Kong filing details in early August, drawing wider attention to what was shaping up as a major crypto industry dispute.
This article is informational only and should not be construed as financial or legal advice. Court outcomes remain uncertain, and investors should conduct their own research before making any decisions.
