South Korean lawmakers have elevated calls for Binance to compensate users affected by the collapse of the GoFi deposit program by GOPAX.
This renewed focus follows comments by Rep. Min Byung-dug during a parliamentary session, questioning regulators and challenging the conditions under which Binance received approval to acquire GOPAX despite unresolved user losses estimated at $106 million.
How the GoFi Dispute Started
Following FTX’s bankruptcy in late 2022, GOPAX’s GoFi offering, once promoted as a high-yield deposit program, became mired in controversy when its underlying lending partner, Genesis Global Capital, banned withdrawals.
Due to the shock, about 3,000 depositors were unable to access their money, which led to protracted demonstrations, public uproar, and requests for compensation.
Repayment plans have stopped due to the platform’s operational issues and external legal entanglements related to Genesis, even though GOPAX investigated remedy options.
Binance Acquires GOPAX
South Korea’s Financial Intelligence Unit initially blocked Binance’s acquisition of GOPAX in early 2023 due to compliance violations. The deal received approval in October 2025 after Binance addressed outstanding regulatory concerns.
Legislators now argue that the buyout should have been contingent upon a detailed compensation plan for GoFi victims, warning that incomplete restitution risks setting a precedent for lax consumer protection in future crypto mergers.
Rep. Min Byung-dug highlighted that the merger approval failed to safeguard depositors, raising further debate about perceived political influence and the adequacy of oversight amid ongoing investigations.
Further, opposition lawmakers amplified these criticisms, questioning why user interests did not receive priority and if Binance intends to fulfill prior assurances to resolve frozen GoFi balances.
Next Steps
Parliamentarians and user coalitions continue pressing for a resolution, demanding public disclosure of compensation measures and accountability in post-acquisition cases.
The GoFi dispute may set a benchmark for future crypto industry mergers where customer protection and transparent settlement of legacy liabilities are expected by both regulators and the public.
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