Gopax "Withdrawal Delays, Discussing Liquidity Supply with Global Blockchain Firms"

"Uncertainty in Compliance with Maturity Not Only for Free-Form Products but Also for Fixed-Form Products"

[Asia Economy Reporter Myunghwan Lee] Gopax, which has faced withdrawal delays in its deposit service due to the market chain collapse following the bankruptcy of cryptocurrency exchange FTX, announced that it is "positively discussing with global blockchain infrastructure companies to secure liquidity supply."

On the afternoon of the 21st, Gopax stated through a notice on its homepage, "We are using all possible means and methods against Genesis and Digital Currency Group to fully repay customer assets." However, it did not disclose the names of the blockchain companies involved in the liquidity discussions.

Earlier, cryptocurrency exchange Gopax suspended withdrawals from its own deposit service product, 'GoFi,' starting from the 16th. This was due to the service suspension by Genesis Trading, a U.S.-based cryptocurrency lending company.

GoFi is a product where customers deposit their cryptocurrencies and receive interest on them. The deposited cryptocurrencies are managed through Genesis Trading, but as Genesis Trading halted new loans and redemptions following the FTX incident, GoFi customer assets have also been frozen.

Regarding this, Gopax explained, "Due to the sudden market instability, we requested Genesis to repay the entire balance of the GoFi flexible product to protect customer assets, and we received confirmation that the repayment request would be fulfilled within a maximum of three days according to the contract." However, "this has not been executed due to Genesis announcing a temporary suspension of new lending and repayments."

They also suggested that it might be difficult to meet the maturity obligations of fixed products as well. GoFi added, "The fulfillment of maturity for fixed products that are soon to mature is also uncertain."

Gopax emphasized, "We are prioritizing investor protection and coordinating the details," and added, "We will share further progress through announcements as soon as possible."

However, Gopax stressed that there are no issues with general cryptocurrency trading except for the GoFi product. Gopax stated, "This notice applies only to the GoFi product, and assets deposited in GoFi and general customer assets at Gopax are stored separately, so there is no impact on general customer assets," and "Customer assets deposited at Gopax are held at over 100%, allowing deposits and withdrawals at any time without issues."