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Binance’s Controversial Sale of Gopax Asset Claims
Binance, the largest shareholder of the South Korean cryptocurrency exchange Gopax, made headlines on May 27 when it sold the asset claims of Gopax victims at a significant discount. This move has caused financial losses for investors and raised concerns about Binance’s commitment to compensating victims of the ‘GoFi’ service.
Initial Promises and Unexpected Actions
When Binance acquired a majority stake in Gopax, it pledged to compensate investors for the losses incurred due to fund withdrawals being suspended in the ‘GoFi’ service. However, instead of using its own funds for compensation, Binance opted to sell the victims’ asset claims at discounted rates, leaving investors in a difficult position.
Impact on Investors and Cryptocurrency Market
Following the sale of the asset claims, the prices of major cryptocurrencies, including Bitcoin, experienced a surge, exacerbating the financial gap for Gopax’s creditors. The total debt to GoFi has now risen to an estimated KRW 100 billion, excluding any previous repayments, further complicating the situation for affected investors.
Investor Discontent and Regulatory Scrutiny
The controversial sale of Genesis asset claims has sparked discontent among investors and regulatory scrutiny. Genesis, the virtual asset deposit service associated with Gopax, recently had its bankruptcy compensation plan approved in a U.S. court, highlighting the contrasting approaches taken by different cryptocurrency exchanges in compensating affected customers.
Gopax’s board of directors, which includes Binance representatives, is facing accusations of withholding information and lack of transparency regarding the handling of funds and compensation plans. The Financial Services Commission (FSC) of South Korea is actively reviewing the situation and has requested additional information from Binance to address concerns related to money laundering and other regulatory issues.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
