Binance plans to wrap up the restitution for South Korea's GoFi users by the end of this year, according to SB Seker, the exchange's Head of APAC. The announcement marks a decisive step in a liquidity crisis that left thousands of investors stranded since 2023.
GoFi Freeze and Binance's Takeover of Gopax
GoFi, a decentralized finance (DeFi) service run by South Korean exchange Gopax, halted withdrawals in early 2023 after its partner Genesis Global Capital filed for bankruptcy. In response, Binance acquired a majority stake in Gopax in February 2023, but the deal required local regulatory approval, which finally came late last year. With that green light, Binance moved quickly to settle GoFi claims.
Seker stated that all parties — users, Binance, regulators and other stakeholders — are aligned on resolving the matter by year-end. The restitution funds, currently held in third-party custody, will soon be disclosed via a public wallet address. The wallet contains significant amounts of Bitcoin, Ether and USDC, representing the original assets lost by GoFi users.
Restitution Based on Crypto Quantity, Not Fiat Value at Freeze
A notable detail: the payout matches the exact quantity of digital assets lost, rather than their fiat equivalent at the time of the freeze. This means users benefit from the price appreciation of Bitcoin and Ether since the halt. Binance has allocated crypto accordingly and is awaiting final approval from South Korean authorities to begin distributions.
Post-Restitution Plan: Upgrade Gopax, Possibly Rebrand
Once the restitution is complete, Binance will shift focus to stabilizing and upgrading Gopax. Seker said Binance will apply its global standards for technical and security support. A rebranding under the Binance name is possible, but the immediate priority is aligning Gopax with South Korea's regulatory framework and market needs.
By settling GoFi claims and strengthening Gopax, Binance aims to bolster its foothold in South Korea's competitive crypto market. The move positions the exchange to challenge local leaders and capture new growth opportunities in the region.