Binance claims RedotPay diverted users in $470M lawsuit

Binance has 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.

From partners to plaintiffs

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.

RedotPay keeps building

RedotPay operates as a crypto debit card platform, allowing users to load funds via various on-chain transfers, including USDT on the TRC20 network. It targets regions where traditional banking access is limited, including parts of Africa, Southeast Asia, and Latin America.

RedotPay established a partnership with Ripple in 2025, which facilitates crypto-to-Nigerian naira cashouts. RedotPay continues to accept deposits from various on-chain sources, maintaining its core product offering even without the Binance Pay integration.

What this means for the crypto payments landscape

Binance has been reassessing third-party collaborations as part of broader efforts to address regulatory challenges and compliance concerns globally. Terminating the RedotPay partnership fits that pattern, but the lawsuit elevates the situation from a routine business decision to something far more adversarial.

Regulators worldwide have been tightening oversight of crypto payment providers, particularly those operating in emerging markets where consumer protection frameworks are still developing. A high-profile lawsuit alleging fund diversion gives regulators fresh ammunition to argue for stricter licensing requirements and custody rules for payment platforms.

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