Binance Sues RedotPay for Alleged User Diversion and Damages of Over $473 Million

Binance-affiliated companies have filed a lawsuit against Hong Kong-based stablecoin payments firm RedotPay, seeking around $473 million or more in damages. The dispute centers on allegations that RedotPay allowed users to fund its payment cards through Binance Pay outside the terms of an existing commercial agreement.

The lawsuit highlights the financial impact of user retention in crypto payment integrations. By utilizing a rigid per-user lifetime customer value metric, the exchange is emphasizing its strategy for retaining retail payment volume among crypto exchange customers.

RedotPay was planning a US IPO that could value the business above $4 billion before the legal action complicated its near-term valuation prospects. The firm had recorded significant growth over the past year, with its annualized total payment volume crossing $10 billion in December 2025.