Binance covertly sells Gopax’s share of claims in Genesis Global

Binance has been responsible for covertly selling its subsidiary in South Korea, Gopax’s claims about Genesis Global, for half its value or even less. 

In 2023, Binance was known to be the biggest shareholder of Gopax, a prime cryptocurrency exchange in South Korea. In return for the buying of shares of Gopax at a discounted price, Binance committed to making up the losses incurred regarding the exchange’s crypto-controlling solution, GOFi, which witnessed Genesis Global Capital’s bankruptcy in 2022. 

The users of GOFi were up against losses in assets, amounting to $57 million. Gopax, together with Binance, has, till now, been able to make up for 50% of the losses incurred. 

Towards the beginning, Binance committed to making up for the entire loss of GOFi Genesis via its industry recovery program (IRI). However, this covered only the initial 1.5 billion won. 

The IRI was not utilized to cover the following payment amount. Instead, it was through the sale of user deposit claims for only 50% of its actual worth to an intermediary in August last year. This transaction was carried out secretly by Binance, together with Gopax.  

A short while back, a bankruptcy court in New York gave its consent to a $2 billion settlement between Genesis and the State Attorney General’s Office for paying back 77% of the client’s claims for creditors. 

Gopax had not divulged any details regarding Genesis’ settlement since it had carried out a sale of user claims at a throwaway cost. With the price rise of bitcoin, GOFi investors must have incurred further losses if they had not sold them. 

The balance of 50%, which remains to be paid, has a value to the tune of 35 billion won, at the present time being 100 billion won.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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