Gopax investors could face $471M loss if Binance acquisition fails News ▸ South Korea ▸ Binance ▸ Exchanges
Gopax investors could face $471M loss if Binance acquisition fails
Binance is in the process of acquiring Gopax, however, the South Korean exchange has about $471 million of customers' fund locked in Genesis.
1 min read
Updated: Jan. 6, 2023 at 1:32 pm UTC
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South Korean exchange Gopax needs to repay customers roughly $471 million in deposits locked up in Genesis Trading — which could be lost if Binance acquisition falls through.
Binance reportedly completed due diligence for the acquisition of Gopax on Jan. 2, and purchased a stake in Gopax’s largest shareholder, Lee Jun-hang, who owns 41.2% of the company.
According to Chosun on Jan. 6, Gopax is facing a shortfall of 600 billion won (approximately $471 million) from its deposits in Genesis Trading. The funds were reportedly locked in Genesis, before it suspended redemption on Nov. 16, 2022, due to the FTX fallout.
However, chances of redeeming the funds locked in Genesis are decreasing as the crypto lender is reportedly looking to file for bankruptcy.
“If the negotiations for Binance’s acquisition of Gopax shares fail, there is a high possibility that the damage to GoFi investors will become a reality.”
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Christian Nwobodo
Christian is a crypto-curious nerd who loves to investigate how protocols work under the hood. Christian is interested in DeFi protocol research, token economics, and on-chain analytics.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
GOPAX
GOPAX (Global Online Professional Asset eXchange) is a South Korean cryptocurrency exchange that was launched by Streami Inc., a blockchain services company, in November 2017.