RedotPay's U.S. IPO Is Delayed to 2027, Caught Between a $473M Binance Lawsuit and Regulatory Approvals

RedotPay, a Hong Kong-based stablecoin payments company that processes over $10 billion in annualized payment volume and serves more than 6 million users across 100+ countries, has pushed its planned U.S. initial public offering to at least 2027, according to an August 14, 2026 Bloomberg report. The delay comes as the company works through regulatory approvals for its U.S. expansion and defends itself against a $472.8 million lawsuit filed by Binance-affiliated entities in a Hong Kong court. The case offers a rare, detailed look at how fast-growing crypto payments firms navigate the collision of high-growth ambitions, regulatory compliance, and legal disputes with industry giants.

Why the IPO Was Delayed

Bloomberg reported on August 14, 2026, that RedotPay postponed its planned U.S. IPO — which had been expected as soon as late 2026 and could have valued the company at $1 billion to $4 billion — because it needs to secure additional regulatory approvals from the countries where it operates before it can proceed with a listing . Unresolved legal matters, particularly the Binane lawsuit, created an overhang that pushed the timeline to 2027 at the earliest . The delay is not a cancellation; the company is prioritizing compliance work and litigation resolution first . RedotPay obtained a U.S. money transmitter license in August 2026 and is preparing to launch its product in the country, signaling that the company is still committed to the U.S. market even as the IPO is paused .

The $472.8 Million Binance Lawsuit: Allegations and Timeline

On August 5, 2026, Binance-affiliated entities — Nest Trading Ltd., Distributed Technologies Ltd., and Chaintecs Consulting Singapore Pte — filed a lawsuit in a Hong Kong court against RedotPay's three co-founders: Michael Gao (Zhangpeng), Jonathan Lo (Chan Wa Choi), and Yao Chao (Shiwei Weng) .

What Binance alleges: The plaintiffs claim that RedotPay orchestrated a "fraudulent scheme" that secretly diverted more than 470,000 users away from Binance Card and Binance Pay to RedotPay's own competing card product, in breach of a commercial agreement signed in 2025 . The lawsuit says RedotPay improperly allowed Binance Pay funds to be used for card top-ups outside agreed terms, and that the diverted user base was a key driver of RedotPay's valuation as it prepared for its IPO . Binance also alleges that approximately $304 million in Binance Pay user funds was funneled into RedotPay's ecosystem without proper segregation .

What RedotPay says: The company posted a public response on August 5, 2026, saying the legal proceedings will have no impact on day-to-day operations and that it is "vigorously defending all claims" . It declined further comment because the matter is before the courts .

Related proceedings: Parallel actions are reportedly underway in Singapore. Binance has rejected claims that it is withdrawing that case . A hearing in Hong Kong was scheduled for August 7, 2026 .

New General Counsel: Chen Li

On August 11, 2026 — just days after the lawsuit was filed and three weeks before the IPO delay was reported — RedotPay announced the hiring of Chen Li as its new General Counsel. According to the company's LinkedIn announcement, Chen Li brings over 20 years of post-qualification experience and a distinguished track record across technology, digital finance, and complex cross-border legal work in the Asia Pacific region . Most recently, she spent more than 13 years at Microsoft as Strategic Partnership Lead for Asia . The hire came shortly after former Head of Legal Jonathan Tsang stepped down, effective July 21, 2026 . RedotPay also posted several legal team roles around the same period, including Commercial Counsel and Legal Specialist (Venture) positions , indicating a broader build-out of its legal and compliance function.

Key Company Metrics: Series B, Users, and Payment Volume

Despite the legal and regulatory headwinds, RedotPay continued to report strong growth. Below are the key metrics as of its most recent public disclosures:

Metric	Detail
Series B raise	$107 million (oversubscribed), closed December 2025, led by Goodwater Capital with participation from Pantera Capital, Blockchain Capital, Circle Ventures, and HSG
Total 2025 funding	$194 million (includes a $47 million strategic round in September 2025 that valued the company above $1 billion)
Global user base	Over 6 million registered users as of late 2025 / early 2026
Geographic reach	More than 100 countries
Annualized payment volume	Exceeding $10 billion, nearly tripling year-on-year (as of December 2025)
Annualized revenue	Surpassing $150 million (as of December 2025)
Profitability	Company reported it was profitable as of its Series B announcement

In its Q2 2026 investor update, RedotPay reported record levels for users, revenue, profit, and margins, though it did not disclose specific figures for that period . Some industry sources suggested the company's user base may have surpassed 10 million by mid-2026, with a potential valuation of $2 billion, though RedotPay did not officially confirm these numbers .

What This Means for the Crypto Payments Industry

The RedotPay story illustrates the tension facing stablecoin payment companies: they are growing rapidly and attracting serious venture capital from blue-chip investors, but they remain exposed to regulatory fragmentation and litigation risks. The Binance lawsuit, in particular, is notable because it targets the company's founders personally and seeks nearly half a billion dollars in damages — amounts that, if successful, could reshape the competitive dynamics between crypto exchanges and their payment partners.

For now, RedotPay is pressing ahead with its global expansion, holding a Virtual Asset Service Provider license in Argentina and Money Services Business registrations in both the U.S. and Canada . Its ability to resolve the Binance lawsuit, complete the required regulatory approvals, and eventually list on a U.S. exchange will be closely watched by the entire crypto finance ecosystem.