RedotPay, which describes itself as the world’s largest stablecoin payment card issuer, has put its planned U.S. initial public offering (IPO) on hold to deal with legal issues, Bloomberg reported on August 14, citing people familiar with the decision. The listing, which the company had been preparing toward this year, is now unlikely to happen before 2027, according to the report.
The delay lands squarely on top of a legal dispute The Crypto Times has been tracking closely. Binance-affiliated entities sued RedotPay’s co-founders in Hong Kong earlier this month, alleging the company diverted roughly 470,000 users from Binance Card in violation of a March 2025 partnership agreement, and is seeking approximately $472.8 million in damages. Bloomberg’s reporting on the IPO delay does not specify that the lawsuit is the sole cause, describing the pause more broadly as tied to “legal issues,” but the timing follows directly on the heels of the suit becoming public.
What Bloomberg Reported
According to Bloomberg’s report, people familiar with the matter said RedotPay’s U.S. listing plans, which had emerged publicly in February and were reported to target a valuation above $4 billion with more than $1 billion potentially raised, are now unlikely to proceed before 2027. Banks including JPMorgan Chase, Goldman Sachs, and Jefferies had been reported as engaged on the potential offering.
A RedotPay spokesperson did not directly confirm the delay or its cause stating that the company’s strategy continues to focus on global regulatory compliance and business growth, and pointing to a U.S. money-transmitter license the company said it obtained this week as it prepares to launch its product domestically. The spokesperson declined to comment specifically on the IPO plan.
The Lawsuit Behind the Timing
The legal dispute driving much of the scrutiny centers on Binance’s allegations that RedotPay’s founders, Gao Zhangpeng, Chan Wa Choi, and Yao Chao, ran what Binance’s filing calls a scheme to divert customers who had access to RedotPay through Binance Pay under a March 2025 commercial agreement. Binance alleges that agreement restricted Binance-referred users to narrow use cases, such as converting crypto to fiat, but that RedotPay instead allowed those funds to be used broadly on its own card product, including roughly $304 million in Binance Pay funds funneled into RedotPay’s ecosystem, according to the filing covered by our previous report.
Binance calculated its approximately $472.8 million damages claim by valuing each of the more than 470,000 allegedly diverted users at $925 in estimated lifetime revenue, a figure The Crypto Times examined in detail, finding it broadly comparable to Coinbase’s disclosed per-user revenue in a strong quarter, but aggressive when applied as a lifetime value across a large, mixed user base. That analysis also noted the number functions as Binance’s own litigation input rather than an audited or market-tested valuation. A related petition from a Binance affiliate, Chaintecs Consulting Singapore, is proceeding in a parallel case in Singapore.
RedotPay has rejected the allegations. The company stated that it would vigorously defend against the claims, and it has said the litigation would not disrupt its day-to-day operations. The allegations have not been adjudicated, and no finding of liability has been made against RedotPay or its founders.
Why a Legal Dispute Can Freeze an IPO Timeline
The mechanics here are fairly standard for any company preparing a U.S. listing. A material pending lawsuit generally must be disclosed in detail in a company’s IPO registration statement, and underwriters and their counsel typically want unresolved, large-dollar litigation substantially clarified, through resolution, settlement, or at least a clearer risk picture, before proceeding with investor roadshows. A claim alleging that hundreds of thousands of a company’s users were obtained through breach of contract goes directly to the user-growth and revenue narrative a company would need to defend to prospective public shareholders, which may help explain why this particular dispute, rather than being a side issue, appears closely tied to the listing’s timing.
The Bottom Line
RedotPay’s reported IPO delay highlights how legal issues can complicate the path toward a public listing, particularly for a company whose user growth and business relationships may face scrutiny in pending litigation. Bloomberg reported that the offering is now unlikely before 2027, while RedotPay has not directly confirmed the delay or attributed it to the Binance lawsuit.
The Binance case remains unresolved, with Binance seeking roughly $473 million and RedotPay rejecting the allegations. Whether the litigation affects RedotPay’s eventual listing timeline cannot be established from the information currently available. This report makes no prediction about the outcome of the lawsuit or the timing of any future IPO.
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