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[Executive Summary]
- Binance’s acquisition of Gopax has begun as it received a large-scale investment from Binance, including funds for repayment of its GoFi service. This investment will be used to support all GoFi investors to withdraw all their deposited assets, including interest. It is expected that this investment will strengthen the protection of investors in the Korean market, sending a positive message to the Korean financial authorities.
Binance’s acquisition of Gopax, one of the 5 major virtual asset exchanges operating in the KRW market, has begun as Gopax received a large-scale investment from Binance, including funds for repayment of its virtual asset deposit service, which would supply liquidity.
On February 3rd, 2023, Gopax announced it had signed an investment agreement with Binance to receive funds through the Industry Recovery Initiative (IRI), a fund created by Binance to support companies experiencing a liquidity crisis in the industry after the FTX bankruptcy last year.
Gopax stated, “The investment will be used to support all GoFi investors to withdraw all their deposited assets, including interest. All procedures to do so are expected to be completed by the end of March this year, given the usual administrative procedure period.”
Earlier, in November of last year, the investment repayment of GoFi was suspended in the aftermath of the global virtual asset exchange FTX bankruptcy, and Gopax has been seeking external investment to secure liquidity with the goal of normalizing the service.
Considering that Bloomberg recently reported that “Binance acquired a significant stake in Gopax,” citing an interview with Binance CBO Yibo Ling, it is likely that this investment was also carried out for the purpose of initiating the acquisition of Gopax.
It is expected that this investment, which intends to strengthen the protection of investors in the Korean market, will send a positive message to the Korean financial authorities.
The concluding steps of Binance’s acquisition of Gopax have begun. Although Binance described the purchase as a “Industry Recovery Initiative” to help the blockchain environment, the transaction appears effectively to be Binance’s partial plan to acquire Gopax shares. The specifics of the agreement, such as the acquisition price, percentage of shares, or the conditions for the acquisition have not yet been revealed or confirmed. Follow our blog posts to receive prompt updates on the development of the Binance’s acquisition of Gopax.