Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Binance reaffirms commitment to GOPAX acquisition, GOFi debt repayment
Binance Asia Pacific Director Steve Young Kim speaks during a seminar on compensation for GOFi investors at the National Assembly, Thursday. Courtesy of GOPAX
By Lee Yeon-woo
Binance Asia Pacific Director Steve Young Kim said Thursday that the company — one of the world's largest cryptocurrency exchanges — remains committed to acquiring GOPAX and repaying its debt to GOFi investors.
"Although the losses have increased over time, Binance's leadership remains committed to supporting victim recovery and continues to work diligently," Kim said. "I hope the incoming administration will recognize these hardships. If there are areas where we're falling short, please let us know — we’ll do our utmost to address them."
His remarks were made during a seminar on compensation for GOFi investors held at the National Assembly, hosted by Rep. Park Min-kyu of the Democratic Party of Korea.
Since 2023, Binance has been pursuing the acquisition of GOPAX under investment terms that included the repayment of debts tied to the GOFi service.
GOFi is a deposit product offered by GOPAX that paid interest to customers who deposited virtual assets. However, following the 2022 collapse of the FTX cryptocurrency exchange, GOFi’s operator, Genesis Trading, became insolvent — effectively freezing customer deposits.
To date, approximately 150 billion won ($107.2 million) in funds from 3,000 investors remains frozen. Most of these investors are young, and 90 percent of them deposited less than 100 million won each.
Industry officials — including representatives from GOPAX and Binance — and GOFi investors attend a seminar on compensation for GOFi investors at the National Assembly, Thursday. Courtesy of GOPAX
While Binance intended to repay the debt immediately following approval from financial authorities, the process has been delayed for over two years.
Regulators have raised concerns about Binance’s opaque governance structure and financial transparency — concerns that GOPAX and GOFi investors argue are "groundless."
"Every time the registration period for Virtual Asset Service Providers comes around, the financial authorities hint at certain conditions needing to be met — but legally, there’s nothing wrong," said GOPAX CEO Cho Young-joong. "I honestly don’t know what exactly I’m supposed to do to secure approval."
"Even if the FTX-related collapse was unforeseeable, the relief measures have been actionable and realistic since 2023,” Cho added. "I respectfully urge that appropriate steps be taken in accordance with the law."
GOFi investors also voiced mounting frustration over what they perceive as deliberate inaction by financial authorities.
"Despite repeated requests for a meeting with the Financial Intelligence Unit through our legal counsel, they have refused to meet with us," said Bae Jeong-min, a father in his 30s. "I joined GOFi and deposited the money before my child was born, dreaming of using it to buy a happy home for our family after their arrival."
"We are not asking for government bailouts. This is an issue the private sector can resolve — yet the government is intervening and holding us back," said Jeong Sung-hoon, a 45-year-old investor. "It’s so exasperating and unfair that it keeps me up at night."