GOPAX has been acquired by a cryptocurrency exchange for a majority stake.
The largest operator of a digital asset trading platform has returned to the market after leaving it two years ago with the acquisition of a controlling interest in the ailing South Korean cryptocurrency exchange GOPAX by Binance Holding Ltd.
Binance plans to add capital to replenish customer deposits.
One of the top 10 known creditors of the insolvent company Genesis Global is the parent company GOPAX Streami Inc.
Binance intends to earn from the exchange by allowing users to withdraw money and charging interest on the lucrative GOPAX GoFi product.
According to Binance Founder and CEO Changpeng “CZ” Zhao, “We expect that our move with GOPAX will contribute to greater recovery for the Korean cryptocurrency and blockchain industry.”
The cryptocurrency meltdown of last year and the collapse of Do Kwon’s algorithmic ecosystem for the TerraUSD stablecoin both had an impact on South Korea. Many South Korean investors lost money, which damaged the reputation of the digital asset sector.