FTX implosion disrupts interest issuance by GOPAX product

The implosion of the Bahamas-based crypto exchange FTX is causing ripple effects around the world, and South Korea is no exception.

Seoul-based crypto exchange GOPAX on Wednesday addressed delays in its issuance of interest and withdrawal of principal on its internal savings accounts, called GOFi.

“The withdrawal of principal from and issuance of interest on GOFi is delayed because the products are provided by our business partner Genesis Global Capital, LLC.,” the exchange announced, explaining that Genesis had suspended repayment and new loan activities.  

GOPAX launched the crypto savings product GOFi in Dec. 2020. Genesis, a Digital Currency Group subsidiary, is one of the block chain industry's largest digital asset lenders. 

GOPAX elaborated that the company had requested repayment of all assets belonging to GOFi account holders prior to the announcement by Genesis.

To expedite the repayment process, GOPAX said it is communicating closely with Genesis and its parent, DCG.

“DCG is the second-largest shareholder of GOPAX and one of our core business partners,” the company said. “We will do our best so that our users are able to receive repayments in full.” 

Write to Jin-Woo Park at jwp@hankyung.com
Jee Abbey Lee edited this article.