South Korean exchange Gopax has to repay customers about $471 million in deposits locked in Genesis Trading.
Binance reportedly completed its due diligence on the Gopax acquisition on January 2 and purchased a stake in Gopax’s largest shareholder, Lee Jun-hang, who owns 41.2% of the company.
according to Korea On January 6, Gopax faces a shortfall of 600 billion won (about $471 million) from its Genesis Trading deposits. The funds were reportedly locked in Genesis before redemption was suspended due to the impact of FTX on November 16, 2022.
However, with cryptocurrency lenders reportedly looking to file for bankruptcy, the chances of redeeming the funds locked in Genesis are dwindling.
“If Binance’s talks to buy Gopax shares fall apart, it is highly likely that GoFi investors will suffer harm.”
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