The FSC has already suspended the application for change of registered official filed by Gopax on March 7

South Korean authorities allow the possibility of the cancellation of the deal on the purchase of Gopax exchange by Binance

07.06.2023 - 10:25

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3 min

What’s new? The Financial Services Commission (FSC) of South Korea has reported that it is monitoring the US Securities and Exchange Commission (SEC) lawsuit against crypto exchange Binance. The SEC filed the lawsuit against the platform on June 5, accusing related companies and their founder Changpeng Zhao of violating securities laws and operating without registration. As a result, the FSC may cancel Binance’s purchase deal of local exchange Gopax concluded in February, NewsPim reports.

NewsPim’s material

What else is known? The FSC has already suspended its March 7 filing to change Gopax’s registered official. It is noted that due to alleged violations of the law and the petitions for seizure of assets of Binance.US filing is difficult to restore. The declaration stated the appointment of three people from Binance as directors of Gopax, including Leon Sing Foong, head of Binance Asia Pacific.

In April, the FSC sought clarification on the eligibility of the executives and the money laundering risks on Binance. At the time, a spokesman for the agency said a decision to change the registered executive would be made after the data was received.

Binance bought a majority stake in Gopax, which was experiencing a liquidity crisis, in February. The exchange promised to pay principal and interest in full under the GoFi program. Gopax’s parent company, Streami Inc., is one of the top 10 creditors of bankrupt crypto broker Genesis, part of conglomerate DCG, which in turn is the South Korean exchange’s second-largest shareholder.

On June 6, the SEC requested through the court that the assets of Binance.US customers be frozen to guarantee their protection and subsequent recovery within the proceedings. According to media reports, on June 7, the court approved the regulator’s request and ordered the exchange to return all fiat currencies and crypto assets on its account to customers.

The blocking of Binance.US assets is not expected to interfere with GoFi payments. A Gopax spokesman clarified that the payouts will come from Binance’s accounts in Ireland. He explained that the deal was made with funds from the industry recovery fund, which Binance was not alone in forming.

In late April, Binance.US canceled a deal to buy the assets of bankrupt crypto broker Voyager Digital for $1 billion due to concerns about problems with regulators. After the US Commodity Futures Trading Commission (CFTC) accused the exchange of operating illegally in the country in March, the media reported that Changpeng Zhao intended to reduce his stake in the US arm of the crypto exchange.

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