Binance Under Pressure in South Korea Regarding $106M GOPAX GoFi Assets Frozen
Binance is currently under scrutiny in South Korea.
On 20 October 2025, Min Byung-dug, a South Korean legislator, inquired with regulators about whether Binance would compensate investors whose funds were impacted by the collapse of GOPAX’s GoFi fund. GOPAX had positioned GoFi as a lucrative crypto deposit option. Nevertheless, following the downfall of FTX in 2022, around $106 million in user funds were frozen. This situation impacted approximately 3000 users, and so far, no resolution is apparent.
Now that Binance has taken over GOPAX, it’s incumbent upon the parent company to honor its commitments.
As noted by a local report, during a parliamentary hearing, Min queried the Chairman of the Financial Services Commission (FSC), Lee Eog-won, regarding Binance’s commitment to reimburse the affected users.
South Korean legislator Min Byung-dug calls on Binance to compensate 3,000 GoFi investors at GOPAX, whose $106M in assets have been inactive since the FTX crash in 2022. Questions the approval of the GOPAX acquisition without a repayment strategy. #Crypto #Binance pic.twitter.com/kQvIIfnPG4
— Vincent Bu Lu (@VincentBuLu1) October 21, 2025
Min emphasized that addressing investor compensation should have been a condition prior to Binance’s acquisition of GOPAX. “This is a merger lacking financial backing,” he remarked during the session.
Binance initially unveiled its intentions to acquire GOPAX in 2023, aiming to strengthen its foothold in South Korea. However, the Korea Financial Intelligence Unit (KuFIU) halted its efforts due to Binance’s previous anti-money laundering infractions in the US.
The acquisition was eventually authorized after Binance addressed its crypto law shortcomings.
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Binance Linked To Cambodian Scandal, Lawmakers In Korea Demand Probe
Out of the frying pan, into the fire. As if repaying $106 million was not burdensome enough, more legal hurdles are emerging for Binance.
Kim Jae-sun, another lawmaker in Korea, has expressed worries about Binance’s purported connections to the Cambodian Prince Group, which US authorities have accused of engaging in money laundering and human trafficking.
The U.S. Treasury classified Chen Zhi and the Prince Group as a transnational criminal organization, alleging they operated global scams and money-laundering schemes from Cambodia.
Numerous companies and individuals connected to Prince, including real estate and banking sectors,… pic.twitter.com/HRrduFJ6RZ
— Jacob in Cambodia
He also mentioned that authorities imposed a $4 billion fine on Changpeng Zhao (CZ) and prohibited him from operating in the US due to his past infractions.
Furthermore, Binance’s takeover of GOPAX has generated significant political discussions within the nation. A report indicates that some individuals are questioning the deal’s timing, given it was approved merely nine months after the new government assumed power.
There are also speculations surrounding the connection of a senior GOPAX executive to a prominent figure in President Lee Jae-myung’s administration.
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More Binance Updates: Limitless Lab Dispute, 600 Wallets Banned
CJ Hetherington, CEO of Limitless Labs, accused Binance of demanding 8% of his project’s tokens along with millions in deposits to secure a listing. To support his claim, he shared “alleged” internal communications outlining requests for airdrops, marketing allocations, and collateral.
However, Binance refuted these claims, asserting it does not earn from listings, does not collect fees, and that the deposits are refundable. Additionally, Binance denied any coin dumping claims and reproached Hetherington for violating confidentiality.
Binance Denies Profiting From Token Listings
Binance contended it “does not profit” from the token listing process and labeled the recent allegations from Limitless Labs CEO CJ Hetherington as “false and defamatory.”
> Hetherington ( @cjhtech ) claimed Binance solicited about 8% of… pic.twitter.com/5munTyKmsi
— Karon (@pangestu_karon) October 15, 2025
In other developments, Binance has suspended hundreds of accounts on its network due to trading misconduct. Binance Digital wallet detected and banned over 600 users who were exploiting the Alpha free token distribution campaigns by creating several wallets and employing bots to harvest rewards. For context, Binance Alpha aims to showcase budding Web3 projects and grant users early access to new tokens.
— CryptoTelugu (@CryptoTeluguO) October 19, 2025
The abuses were uncovered during routine audits and community feedback. Eventually, the offenders were flagged for violating platform policies and either banned or had their wallets restricted.
Following this incident, Binance announced enhancements to its monitoring systems and introduced a whistleblowing mechanism through which users can report suspicious accounts. If the claims are validated, the whistleblower is eligible for 50% of any recoverable funds.
However, to qualify, the report must contain credible evidence such as crypto wallet details, screenshots, or IP information.
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Key Takeaways
- Binance is under pressure in Korea to reimburse $106M in frozen GOPAX GoFi assets
- Legislators raise alarms about Binance’s supposed connections to Cambodia’s Prince Group
- Political scrutiny escalates in Korea amid speculations of favoritism during the GOPAX acquisition approval process
The post Binance Faces The Heat In South Korea Over Frozen $106M GOPAX GoFi Funds appeared first on 99Bitcoins.
