As a researcher with a background in finance and cryptocurrencies, I find the situation surrounding Gopax and Binance deeply concerning. The sale of victims’ asset claims for less than half of their worth by Gopax, which is backed by Binance, raises red flags.
On May 27, Binance, a significant shareholder in the South Korean cryptocurrency exchange Gopax, discarded the victims’ claim assets for roughly half their original value.
As an analyst, I’d rephrase it as follows: I’ve come across a Korea Economic Daily article indicating that I, Gopax, am required to compensate our consumers with approximately 70 billion won ($51.4 million) due to our previous involvement with the defunct crypto lender Genesis Global. This lender declared bankruptcy in November 2022. So far, we have already paid back half of this amount to our affected users.
As a financial analyst, I would rephrase that as follows: The unrealized value of the digital assets that were yet to be fully realized during the peak of the cryptocurrency market in November 2022, which was estimated at around $35 billion, is reportedly now worth approximately $100 billion based on a Bitcoin price of $69,000.
Based on an article published in The Korean Times in March, I’ve discovered that Gopax is currently facing significant debt obligations, which has led me to conclude that the company’s capital has been entirely impaired.
As a researcher investigating the cryptocurrency custody service GoFi provided by Gopax, I’ve uncovered that Genesis, the company behind this service, identified an exposure of approximately $1.2 billion linked to the failed Singaporean hedge fund, Triangle Capital. Therefore, Genesis made the decision to halt withdrawals from their platform following this discovery.
A source revealed to Korean Economic Daily that we settled the initial part of our damages obligation using Bitcoin we had acquired by selling the Genesis claim cheaply to an external entity. We’re postponing payment for the remaining 50% damage portion, asserting that it will be fulfilled following the completion of our acquisition of Gopax.
As a crypto investor, I’d say: In February 2023, Binance purchased a substantial share of Gopax, enabling us to re-enter the South Korean cryptocurrency market. However, we announced in February 2024 our intentions to decrease our ownership stake in this exchange.
The SEC’s lawsuit against Binance on June 7, 2023, caused the proposed acquisition to be suspended. As a result, South Korea’s Financial Service Committee decided to scrutinize the deal further.
In a recent hearing at the bankruptcy court, Genesis was authorized to distribute approximately $3 billion among its creditors. This payout can be made through a combination of traditional money and Bitcoin.
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2024-05-28 00:05