Binance has filed a lawsuit against Hong Kong-based RedotPay and its founders, alleging the stablecoin payment card firm diverted approximately 470,000 Binance customers and caused nearly $473 million in losses to the cryptocurrency exchange.

The lawsuit, filed in Hong Kong, claims that RedotPay improperly used Binance Pay funds to top up its own prepaid cards in violation of contractual agreements, according to a Bloomberg report.

RedotPay, which describes itself as the world's largest stablecoin payment card issuer, told CoinDesk on Wednesday that it intends to contest the proceedings. Stablecoin payment cards have become a growing segment in crypto, allowing users to spend dollar-pegged digital assets through conventional card networks at merchants worldwide. The company is also planning a U.S. initial public offering (IPO) seeking to raise more than $1 billion at a potential valuation of $4 billion — a listing trajectory that the litigation could complicate, as unresolved legal disputes typically require disclosure in IPO prospectuses and can affect investor confidence.

"RedotPay is aware of legal proceedings initiated by Binance and will vigorously defend all claims," the firm said in an emailed statement. "The Company rejects the unfounded allegations made against it and its co-founders."

Binance affiliates allege that the founders of the Hong Kong-based stablecoin payments company orchestrated a scheme to redirect nearly half a million Binance customers to the competing platform, resulting in approximately $473 million in losses.

"Since March 2026, the Binance Group has discovered that RedotPay Group had been allowing and encouraging Binance Pay funds to be used, without segregation, for the prohibited use within RedotPay, including card top-ups for RedotPay Card," Binance stated in the filing, according to Bloomberg.

"While Binance does not comment on ongoing litigation, where necessary we will use courts and other forums to pursue what is right," a Binance spokesperson told CoinDesk via email.

In addition to the Hong Kong action, Binance's Chaintecs has filed a separate suit against RedotPay affiliates in Singapore. A hearing is scheduled for Friday, according to the Singapore Courts' hearing list. The dual-jurisdiction approach underscores how crypto partnerships increasingly span multiple legal regimes, where commercial agreements and corporate entities may be distributed across Hong Kong, Singapore, and other jurisdictions.

The dispute traces back to a commercial agreement Binance and RedotPay first entered into in November 2023, per Bloomberg's citation of the filing. That arrangement ended less than six months later after Binance alleged its funds had been used to top up RedotPay's prepaid cards.

A second agreement was established in March 2025, which explicitly required Binance funds to be kept separate. Under that arrangement, Binance customers could use Binance Pay funds on the RedotPay platform to convert cryptocurrency to fiat currency, make in-app transfers, and purchase RedotPay-branded goods — but were prohibited from using those funds to top up RedotPay cards. The agreement also granted RedotPay access to Binance users and made Binance's payment services available across the RedotPay network.

Binance terminated the agreement with RedotPay in April 2026, stating only that the decision was part of its routine merchant partner review.