Binance has invested in South Korean crypto exchange GOPAX.
The investment is part of a global web3 industry recovery initiative to protect crypto consumers and build a sustainable industry.
In late 2022 GOPAX halted withdrawals due to financial issues at Genesis Global Capital and has since been working with regulators to help affected GOPAX users.
Binance partners with GOPAX to make the crypto industry safer and sustainable
On February 3 Binance’s CEO Changpeng Zhao Tweeted that the leading crypto exchange had invested in GOPAX, a popular South Korean crypto exchange that was recently shaken by Genesis Global Capital’s bankruptcy filing. Genesis is a subsidiary of Digital Currency Group (DCG).
Due to Genesis' financial difficulties, GOPAX ceased withdrawals for its DeFi service GoFi. As a result, many GOPAX users had their funds frozen by the exchange.
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With Binance’s help, GOPAX will work with South Korean regulators to rebuild its image, improve user protection standards and reimburse affected users.
As part of this transaction, Binance will inject capital into GOPAX with the objective of securing in full any potential GoFi users’ withdrawal requests against all staked deposits, including interest.
Binance will also work closely with GOPAX to improve user education and blockchain awareness through Binance Academy, an open-access blockchain and crypto learning portal that provides free educational resources to users
Binance's investment is part of the web3 industry recovery initiative, which aims to rebuild trust with consumers and improve the crypto industry's image worldwide.
After the FTX-Alameda scandal and the Terra Luna collapse, Binance and other industry leaders have taken it upon themselves to improve the crypto industry for the better.