[2025 Audit] "Approval After Administration Change" Binance Controversy... Prince Group Connections Raised

On October 20, during the National Assembly's Political Affairs Committee audit, concerns were raised regarding the Financial Services Commission's recent approval of Binance's acquisition of Gopax, specifically focusing on Binance's criminal record and possible connections with Cambodia's Prince Group. Previously, during the acquisition process, there were also calls for compensation to victims who were promised full repayment through the so-called GoFi service.

Lee Okwon, Chairman of the Financial Services Commission, is taking an oath at the National Assembly's Political Affairs Committee during the audit of the Financial Services Commission and others on October 20, 2025. Photo by Kim Hyunmin

Min Byungdeok, a member of the Political Affairs Committee from the Democratic Party of Korea, questioned Lee Okwon, Chairman of the Financial Services Commission, stating, "The precondition for selling Gopax shares to Binance was the full repayment of damages to GoFi victims, but this has not yet been fulfilled. Has Binance submitted a repayment plan?" When Lee Okwon replied that there was no such plan yet, Min continued, "The Financial Services Commission has not yet received a compensation plan from Binance. This is a classic example of a zero-capital M&A. The key issue is whether proper compensation has been provided to the victims, and you must ensure this is addressed."

Binance, which had been preparing to enter the Korean market, sought to acquire Gopax in 2022 on the condition that it would assume the GoFi virtual asset deposit service debt caused by the FTX bankruptcy. However, the Financial Intelligence Unit (FIU) under the Financial Services Commission did not approve the acquisition in 2023 after confirming Binance's violations of anti-money laundering obligations in the United States, only granting approval this month.

Kim Jaeseop, a lawmaker from the People Power Party, noted, "Binance's acquisition of Gopax was completed after about three years," and questioned the process behind the approval. He asked, "Why did the Financial Services Commission, which had been carefully reviewing the case for over two years due to anti-money laundering violations, approve the acquisition just four months after the change of administration? Was the risk resolved within those four months?" In response, Lee Okwon stated, "I understand that Binance sufficiently explained itself in the United States, received reauthorization, and resumed operations there."

Kim further argued, "Although the sanctions in the United States have been lifted, it must be clearly disclosed when and through what procedures this was resolved. I have confirmed that the Deputy CEO of Gopax is the son of a high-ranking official in the Lee Jaemyung administration. There are also reports that the Financial Services Commission approved the acquisition on the condition that the Deputy CEO would become CEO." Lee Okwon replied, "This is the first I've heard of it," and explained, "I was informed that the approval was granted after confirming that issues related to Binance's money laundering and US government sanctions had been resolved and that there were no personal disqualifications for the executives."

Particularly during the session, repeated concerns were raised that Binance was used for money laundering by the Prince Group, which is suspected of being behind criminal activities in Cambodia. Kim, citing press releases from the US Treasury and Department of Justice, criticized, "The real issue is that the Prince Group used Binance, which was acquired by the Financial Services Commission, for money laundering. This has been confirmed by official US press releases." He also asked Lee Okwon if he was aware that "Changpeng Zhao, the founder of Binance, was fined 4 billion dollars and expelled from the US market, and that Binance was also sanctioned in France, India, and other countries for violating anti-money laundering regulations."

Kang Minkook, another lawmaker from the People Power Party, highlighted the criminal activities of the Prince Group through Binance and insisted that financial transactions between domestic financial institutions and the Prince Group should be investigated. Kang stated, "There are five financial institutions that have had relationships with the Prince Group, which has been involved in the kidnapping, confinement, and organ harvesting of Koreans. We have found 52 transactions and overseas remittances totaling 3.96 billion won." He added, "Nearly 91.2 billion won of the Prince Group's illicit funds still remain in domestic banks. Since these funds were used for voice phishing, they should be frozen, seized, and distributed as relief funds to financial consumers."

Lee Okwon responded, "We are currently consulting on the matter with the Ministry of Foreign Affairs and the Ministry of Economy and Finance, and are considering designating the parties involved as restricted from financial transactions."