Binance Affiliate Gopax Sells Genesis Creditor Claims at Steep Discount

Cointelegraph reported that Gopax, a prominent South Korean crypto exchange, is facing backlash from users over its handling of funds linked to the failed crypto lender Genesis. According to local reports, Gopax sold user funds tied to Genesis for half their value in August 2023, leaving users with substantial losses.

The exchange owes users a total of 70 billion won ($51.4 million) stemming from this exposure. While half of this amount has been reportedly paid back, the remaining debt, initially worth 35 billion won, has potentially skyrocketed to 100 billion won due to rising Bitcoin prices.

Gopax's financial situation is reportedly strained, with concerns about insolvency due to these liabilities. The exchange's parent company, Binance, had acquired a stake in Gopax in February 2023, but the deal was halted due to legal issues with the US SEC.

Meanwhile, Genesis, the failed lender, recently secured court approval to repay creditors, potentially offering a lifeline for Gopax users. However, the delay in receiving the remaining owed amount and Gopax's financial struggles have raised concerns among users about the possibility of full repayment.

Resources:

Cointelegraph

Hankyung