Binance Acquires Majority Of Gopax Korea Shares With $1B Industry Recovery Fund
Previously, Binance closed its South Korean operations in 2021, citing low volume and usage. But late last year, it expanded its footprint in Asia by purchasing Sakura Exchange BitCoin in Japan.
Binance, the world’s largest crypto exchange, is returning to South Korea by acquiring a majority stake in the troubled South Korea-based platform GOPAX https://t.co/0YbIujj8ky
— Bloomberg Crypto (@crypto) February 3, 2023
According to Yibo Ling, the chief business officer of Binance, the company already has a significant equity position in Gopax, one of many crypto companies impacted by the FTX crisis that has halted withdrawals from a certain single number of products by November 2022.
The acquisition is being funded by a $1 billion venture led by Binance called the Industry Recovery Plan. Binance plans to inject capital into the exchange to allow customers to withdraw funds and pay interest on GoFi, Gopax’s profitable product.
Binance Acquires Majority Of Gopax Korea Shares With $1B Industry Recovery Fund 3
Earlier, it was also reported by people familiar with the matter that Binance has completed due diligence on its acquisition of Gopax, a South Korean exchange, and plans to acquire a 41.2% stake in it.
Last November, it was reported that Gopax’s GOFi wealth management product was affected by Genesis and delayed repayment of debt and interest.
Besides Gemini, Genesis is also a partner in a yield product offered by GOPAX, which halted customer withdrawals in November.
The parent company of the US crypto lender, Digital Currency Group, is GOPAX’s second-largest shareholder, according to GOPAX’s blog post.
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