An employee of Binance has reportedly stated that the acquisition of Gopax, a South Korean-based crypto exchange, has yet to be determined, according to WU Blockchain.
It has been noted that Gopax is currently in need of approximately $47 million in order to repay its wealth management product customers. If Binance is unable to provide the necessary funding, it is possible that investors may experience losses.
It has been previously reported by TronWeekly that Binance, a leading global cryptocurrency exchange, is planning to enter the Korean market through the acquisition of Gopax, a Korean exchange. The acquisition was reportedly in its final stages, with due diligence completed and procedures being confirmed.
Binance Acquisition Of Gopax Exchange
South Korean media outlet Chosun has confirmed that cryptocurrency exchange GoPax must pay back up to KRW 60 billion (approx. 47 million) to its customers.
According to the report, following the collapse of FTX in November of last year, Genesis Global Capital, the management company for GoFi, ceased repayment and GoFi deposits became insolvent. Genesis has repeatedly promised to repay the funds, but it is uncertain if they will be able to do so.
The funds, which include principal, interest, and delay interest, must be returned for both fixed and free-form products and are based on the closing price of virtual assets at the time of payment suspension.
On November 23, KRW 33.8 billion was calculated as the amount to be repaid for suspended fixed-type products, made up of KRW 33.1 billion in principal and KRW 700 million in interest.
When this amount is subtracted from the total repayment fund of KRW 60 billion, KRW 26.2 billion remains. This remaining amount is based on the closing price on November 16 and corresponds to the repayment of principal and interest for free-form products.
The acquisition of Gopax by Binance is expected to be equal to or greater than the total amount of GoFi repayments. However, if GoPax is unable to secure the necessary funds from Binance, which is reportedly in talks to acquire the company, domestic investors may suffer losses.
