Binance's Lawsuit Delays RedotPay's US IPO Plans, Postponement Likely Until 2027

According to Bloomberg and industry media CoinDesk, citing informed sources, RedotPay has proactively halted its plans for an initial public offering (IPO) in the US due to an unexpected legal dispute, with the related listing process likely needing to be postponed until 2027 at the earliest before it can be resumed.

Looking back at the previous capital operation path, RedotPay's plan to go public in the US was first made public in February this year. At that time, the market had given it a post-money valuation expectation of up to $4 billion, with the company originally intending to raise over $1 billion in incremental funds through this public offering. However, with the formal legal challenges from core business partners, this high-valuation financing channel has been forced to hit the pause button.

$470 Million Claim Origins

The root cause of the sudden setback in the listing process stems from a civil lawsuit filed by a Binance-affiliated company in the Hong Kong High Court in early August. Binance has directly named three co-founders of RedotPay as defendants, formally proposing a massive $472.8 million claim.

The lawsuit details the conflicts of interest during the cooperation period between the two parties:

1. Commercial Authorization and Channel Opening: The two parties formally signed a commercial cooperation agreement in March 2025, allowing RedotPay legal access to Binance's vast user ecosystem and traffic pool;

2. Allegations of Unauthorized User Asset Migration: Binance accuses the defendants of allegedly using improper means to systematically divert over 470,000 high-net-worth paying users from the original Binance card business system to similar competing products under RedotPay;

3. Failure of Payment Fund Isolation: Verification records show that during a risk control inspection in March 2026, Binance discovered that some user funds belonging to the Binance Pay system had directly settled and flowed into RedotPay's own card product recharge base without strict risk control isolation.

Licensing Compliance Cannot Hide Litigation Shadows

In response to rumors of delays in the capital market and legal lawsuits, a RedotPay spokesperson did not directly confirm the specific conclusion and direct cause of the IPO delay, but reiterated that the management's core strategic focus remains on promoting global business growth and compliance layout.

As a proactive defense on compliance, RedotPay emphasized that the company has officially obtained a Money Transmitter License (MTL) this week, intending to demonstrate to the market the compliance resilience of its underlying operational system. However, under the stringent US stock market review mechanism, unresolved lawsuits involving significant interests and massive claims are typically viewed as core substantive risks by capital markets and regulatory agencies. Whether the two parties can reach a compromise on interests inside and outside the court will directly influence RedotPay's timeline for restarting its public offering.

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