Crypto▼ Bearish
Binance Sues RedotPay for $470M, Alleges Fund Diversion
Binance claims RedotPay diverted $470M in user funds after ending their partnership. The suit could reshape how crypto payment firms handle custody.
Continue with
Binance filed a $470 million lawsuit against RedotPay, alleging the crypto payments platform diverted user funds. The legal action comes months after Binance severed ties with the company, terminating all Binance Pay functionalities on RedotPay effective April 3, 2026.
Binance and RedotPay once had a commercial relationship, with RedotPay integrating Binance Pay into its crypto debit card system. Users could move funds between the two platforms, spending crypto through RedotPay's card infrastructure while leveraging Binance's payment rails.
That arrangement ended on April 3, 2026, when Binance pulled the plug. At the time, the exchange characterized the move as part of a routine review of its merchant partners.
The core allegation in the lawsuit centers on fund diversion, with Binance claiming that RedotPay redirected money that should have flowed through proper channels, allegedly to the tune of $470 million. No court filings or detailed public statements have confirmed the granular specifics of how the alleged diversion occurred. User reports surfaced prior to the partnership's termination, flagging delays in deposits between the two platforms, though these issues have not been publicly tied to any litigation.