Korea’s GOPAX Backed By Genesis Paused Withdrawal

South Korean crypto exchange GOPAX has suspended the withdrawal of principal and interest payments in the Defi service. The suspension at GOFi was driven by partner Genesis Global Capital.

GOPAX confirmed today that the suspension of withdrawals and interest payments at the GOFi crypto savings product is ongoing. The action is the result of partner Genesis Global Capital, which has halted acquisitions and initiated new loans at its lending arm Genesis Global Trading due to the impact of FTX’s liquidity crisis.

Genesis Global Capital announced the suspension on Wednesday, citing “abnormal withdrawal requests” following the public collapse of FTX last week. Recent reports say the global crypto lender is seeking a $1 billion emergency loan by Monday. 

Before Genesis made the announcement, GOPAX claimed to have asked Genesis to restore all GOPAX user assets. however, it has not yet received payment. As a result, the exchange claims to be in contact with Genesis and its parent firm, Digital Currency Group (DCG).

GOPAX’s second-largest shareholder is Digital Currency Group. Users have been informed that the suspension solely applies to its DeFi service and that user assets put in the trading platform are stored apart from GOFi assets.

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