[Asia Economy Reporter Lee Jung-yoon] Domestic cryptocurrency exchange Gopax announced on the 17th that withdrawals from Gopay, its coin deposit service, are being delayed. The fallout from Genesis Trading, a cryptocurrency lending service provider, suspending its services due to the FTX incident has spread to the domestic market as well.
Gopax explained in a notice titled "Notice of Withdrawal Delay for Gopay Flexible Products" released the previous day, "Gopay products are provided by our partner Genesis Global Capital," adding, "Deral Islim, CEO of Genesis Global Capital, recently announced that due to increased turmoil in the virtual asset market and a surge in repayment requests, they will temporarily suspend new lending and repayments to protect customer assets."
It continued, "Before this announcement, we requested repayment of all assets to protect customer assets, but repayments have not yet been made," and "We are in continuous communication with Genesis Global Capital and its parent company DCG to receive these payments."
Genesis Trading, a cryptocurrency lending service provider and parent company of Genesis Global Capital, stated on Twitter the previous day that "after consultation with professional financial advisors, new loans and redemptions will be temporarily suspended." This is due to abnormal withdrawal requests following the FTX incident, which exceeded liquidity. It is known that Genesis Trading has $175 million frozen in FTX accounts.
Additionally, Gopax stated, "DCG is Gopax's second-largest shareholder and currently the most crucial business partner in the digital asset ecosystem. Even if there is a delay in repayment, we will do our best to ensure that Gopay deposit assets are repaid."
They added, "This notice applies only to Gopay products, and assets deposited in Gopay are stored separately from general Gopax customer assets, so there is no impact on general customer assets," and "Customer assets deposited with Gopax are held at over 100%, and deposits and withdrawals are possible at any time."
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