Binance Bought Majority Share Of This Exchange!

Binance, based in South Korea cryptocurrency exchange GOPAX bought a majority stake, returning the largest operator of digital assets trading platform to a market it launched two years ago.

Binance Returns To South Korea’s Crypto Market Through Its Share On GOPAX Exchange

The terms of the agreement for the majority stake were not disclosed. Binance plans to add capital to replenish customers’ deposits.

Yibo Ling, chief operating officer of Binance The firm took a “notable” equity position on GOPAX, which stopped withdrawals from certain products in November, according to the report.

Funding for the acquisition came from a Binance-led co-investment project called the Industry Recovery Initiative, to which Binance committed $1 billion. Terms were not disclosed.

GOPAX’s parent company, Streami Inc. It is listed as one of the top 10 known creditors of the bankrupt credit institution Genesis Global. Genesis was a partner of a returns product offered by GOPAX, which suspended customer withdrawals in November.

According to the GOPAX blog post, the parent company of the US crypto lender, Digital Currency Group, was the second largest shareholder in GOPAX.

Binance plans to inject capital into the exchange so that customer withdrawals and interest payments can be made for GoFi, GOPAX’s yield product.

“The main purpose of this deal was to support customers and ensure that customers who want to attract assets can do so,” Ling said in an interview.

Binance stopped its operations in South Korea in 2021, citing low usage and volume. However, late last year, Sakura Exchange in Japan expanded its business in Asia by acquiring BitCoin.

“We hope that taking this step with GOPAX will rebuild the Korean crypto and blockchain industry,” Changpeng “CZ” Zhao, founder and CEO of Binance, said in a statement.

*Not investment advice.