Binance Sells Gopax Victims’ Asset Claims for Less Than Half of Original Value
Binance Sells Victims’ Asset Claims at a Fraction of Their Worth, Leaving Gopax in Financial Turmoil
In a shocking turn of events, Binance, the major stakeholder in the South Korean cryptocurrency exchange Gopax, has sold the victims’ asset claims for less than half of their original value. This move has left Gopax in a state of financial turmoil, as they struggle to meet their debt obligations.
According to a report by Korea Economic Daily, Gopax is required to pay consumers a total of 70 billion won ($51.4 million) due to their involvement with the defunct crypto lender Genesis Global, which went bankrupt in November 2022. While Gopax has already paid users 50% of the total amount owed, the remaining outstanding digital assets are now valued at 100 billion won, significantly higher than their initial worth.
The situation has been further complicated by Genesis’s involvement in the cryptocurrency custody service GoFi, which ceased withdrawals after discovering a $1.2-billion exposure to the doomed Singaporean hedge fund Triangle Capital. This has put Gopax in a precarious position, with the company facing complete capital impairment.
In an interview with Korean Economic Daily, a source revealed, “We paid with Bitcoin obtained by selling the Genesis claim at a low price to a third party, and we are delaying payment of the remaining 50% of the damage, saying we will pay it after the acquisition of Gopax is completed.” Binance had acquired a significant equity stake in Gopax in February 2023, bringing the exchange back to the South Korean market. However, plans to reduce their ownership stake in the exchange were put on hold due to a lawsuit filed by the US Securities and Exchange Commission against Binance in June 2023.
Genesis, on the other hand, recently received approval from bankruptcy court to pay back its creditors using cash and Bitcoin, totaling $3 billion. The ongoing financial woes of Gopax and the uncertainty surrounding Binance’s ownership stake have raised concerns within the cryptocurrency community, as investors and users alike await further developments in this unfolding saga.
