- Binance aims to complete GoFi restitution for South Korea by year-end.
- Binance’s Gopax acquisition set to resolve GoFi user liquidity crisis.
- Restitution funds held in crypto, reflecting price gains since freeze.
Binance is set to complete the restitution for South Korea’s GoFi users by the end of this year, according to SB Seker, Head of APAC at the global crypto exchange. This marks a crucial step in resolving the prolonged liquidity crisis that has impacted thousands of South Korean investors. In a recent statement, Seker expressed that all involved parties, including users, Binance, regulators, and other stakeholders, are aligned on the goal of closing this matter.
The issues began in 2023 when GoFi, a decentralized finance (DeFi) service under the South Korean exchange Gopax, halted withdrawals. The freeze occurred after Genesis Global Capital, its partner, filed for bankruptcy. To help resolve the situation, Binance acquired a majority stake in Gopax in February 2023. However, the acquisition faced delays as it awaited approval from South Korean authorities, which came late last year.
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GoFi’s Withdrawal Freeze and Binance’s Role in Resolving the Crisis
With the approval now in place, Binance plans to soon reveal the wallet address where the restitution funds are being stored, currently held in third-party custody. The wallet contains various cryptocurrencies, including significant amounts of Bitcoin, Ether, and USDC, reflecting the assets originally lost by GoFi users.
Importantly, the restitution funds match the amount of digital assets lost, rather than their fiat value at the time of the freeze, taking into account the price appreciation of Bitcoin and Ether since that period. Binance is now awaiting further approvals from South Korean authorities to finalize the distribution process.
Strengthening Binance’s Position in South Korea’s Crypto Market
Once the restitution process is concluded, Binance plans to focus on stabilizing and upgrading Gopax. Seker noted that Binance will provide technical and security support by applying its global standards to improve the platform. While there is potential for Gopax to be rebranded under the Binance name, the primary focus remains on aligning Gopax’s offerings with South Korea’s regulatory framework and meeting market demands.
By addressing the restitution issue and strengthening Gopax, Binance aims to enhance its presence in South Korea’s crypto market. This move positions Binance to challenge the top spot in the competitive local market, providing new opportunities for growth and establishing the exchange as a key player in the region.
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