RedotPay’s planned U.S. initial public offering has been delayed due to regulatory approvals and legal issues. The crypto credit card provider secured a money transmitter license in the country this week and is preparing to launch services. However, the company is also facing a nearly $473 million lawsuit from Binance affiliates in Hong Kong, who allege misuse of confidential information. RedotPay has rejected the claims. The firm now has over 8 million users across 100+ countries and $12 billion in annualized payment volume. It had been exploring a New York listing since February with a potential valuation above $4 billion.
RedotPay’s U.S. IPO plans are currently paused, according to a recent report. The company is working through regulatory approvals and legal issues but has not issued a statement on the delay.
Instead, representatives have stated that the firm secured a money transmitter license in the country this week and is preparing to launch its services. RedotPay has been exploring a New York listing since February, with the move potentially raising more than $1 billion and a valuation above $4 billion previously discussed.
The company has also been seeking up to $150 million in funding ahead of the stalled IPO. RedotPay now has more than 8 million users across over 100 countries, with annualized payment volume reaching $12 billion.
The firm holds a Virtual Asset Service Provider license in Argentina and has Money Services Business registrations in the U.S. and Canada. Adding to the complications, Binance affiliates sued RedotPay’s founders in Hong Kong earlier this month, seeking nearly $473 million in damages.
The affiliates argue that RedotPay’s founders used confidential information from Binance to build a competing payments business and poach users. RedotPay has rejected these claims.
The dispute has also reached Singapore, with both sides disagreeing over the status of a related case. RedotPay recently claimed it expects Binance to drop the case, while the latter maintains that their claims will stay active.
