Binance and RedotPay Clash Over Singapore Lawsuit Amid Broader Legal Battle

A legal dispute between Binance-affiliated entities and payment platform RedotPay has intensified with conflicting statements regarding the fate of a related lawsuit in Singapore. RedotPay announced its expectation for Binance to discontinue the Singapore proceedings and stated it would seek legal costs arising from this discontinuance. However, Binance refuted this, asserting that its claims remain active and that it has informed both the court and RedotPay accordingly. These developments are intertwined with a broader legal battle in Hong Kong, where nearly $473 million in damages is being sought.

The legal action became public on August 5, when Binance-affiliated entities Nest Trading, DistributedTechnologies, and Chaintecs Consulting Singapore filed a petition in Hong Kong against RedotPay co-founders Gao Zhangpeng, Chan Wa Choi, and Yao Chao. The lawsuit alleges that RedotPay breached the terms of a commercial agreement signed in March 2025 by allowing users to top up RedotPay stablecoin cards directly with Binance Pay funds, thereby diverting over 470,000 Binance Card users to its own product. Binance claims losses of $472.8 million due to this alleged “fraudulent scheme,” calculating the figure based on an estimated lifetime value of $925 per diverted user. Furthermore, it is alleged that approximately $304 million in user funds moved from Binance Pay into RedotPay's ecosystem through this arrangement.

This is not the first time such an issue has arisen between the two companies. Their initial partnership, which began in November 2023, collapsed within six months over identical allegations concerning the use of Binance Pay funds for RedotPay Cards. A replacement deal signed in March 2025 reportedly included assurances that Binance funds would be kept separate. Binance stated it discovered the practice after March 2026 and completely cut off support for the integration on April 3, 2026. RedotPay, however, has rejected all allegations, stating its confidence in its legal position and its intention to "vigorously defend all claims". The company also affirmed that the ongoing proceedings have no impact on its day-to-day operations.

The timing of this legal battle is particularly critical for RedotPay, as the company is reportedly considering a U.S. initial public offering (IPO) that could value it at around $4 billion, while also seeking to raise fresh funds amidst executive changes. Binance's allegations raise questions about the true source of RedotPay's rapid growth and how much of it was genuinely independent. Notably, RedotPay's recent recognition by CNBC as a top fintech company has been overshadowed by this legal pressure.

Analysts and market observers suggest that the outcomes of these lawsuits in Hong Kong and Singapore could significantly influence how commercial agreements between crypto exchanges and payment card issuers are structured in the future. Such cases may set precedents for how user bases and platform access in the crypto sector are protected as commercial assets. Both parties are reportedly preparing for a lengthy legal process, and the resolution of this dispute could impact how other exchanges shape their partnerships with third-party providers.