RedotPay wanted a $1B IPO, but they got a Binance lawsuit instead!
Affiliates have sued the stablecoin firm over use of confidential information.
Crypto credit card provider RedotPay’s planned US IPO has hit a roadblock. There’s regulatory problems on one hand, and a separate issue with Binance [BNB] on the other.
So, what gives?
RedotPay’s U.S IPO plans face delays
RedotPay is currently working through regulatory approvals and legal issues. According to a recent report from Bloomberg, the company has paused its IPO plans, citing people familiar with the matter.
While the company hasn’t issued a statement on the same, they have instead opened up about their U.S expansion.
Representatives have stated that they secured a money transmitter license in the country this week, and is preparing to launch its services.
Rapid growth raises the stakes
RedotPay has been exploring a New York listing since February. The move could raise more than $1 billion, with a valuation above $4 billion previously discussed.
The company has also been looking to raise up to $150 million in funding ahead of this stalled IPO. RedotPay now has more than 8 million users across over 100 countries. Its annualized payment volume has reached $12 billion too.
The firm also holds a Virtual Asset Service Provider (VASP) license in Argentina and has Money Services Business registrations in the U.S and Canada.
To add to the complications…
… Binance affiliates sued the company’s founders in Hong Kong earlier this month; seeking nearly $473 million in damages. Their argument was that RedotPay’s founders used confidential information from Binance to build a competing payments business and poach their 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.
Final Summary
- RedotPay’s U.S IPO plans in limbo due to approvals and legal issues.
- A nearly $473 million lawsuit from Binance affiliates makes things more complicated.
