Binance acquires majority stake in S.Korea's crypto exchange Gopax

Binance, the leading cryptocurrency exchange globally, has acquired a majority stake in South Korea's Gopax by purchasing CEO Lee Joon-haeng's 41.2% stake and new shares, according to reports.

Gopax announced on Wednesday that Lee has resigned from his position as a registered director but will continue to be involved in management while retaining his representative role. To fill the vacancy, Binance has appointed Leon Foong, head of its Asia-Pacific market, as the new registered director and co-representative.

The acquisition comes after Gopax entered into an agreement with Binance on Feb. 3 to receive funds from Binance's Industrial Recovery Fund (IRI), which was established to support struggling players in the cryptocurrency sector impacted by the recent drop in crypto values and the collapse of crypto exchange FTX.

The new capital from Binance will enable Gopax to normalize its Korean crypto trading platform and allow customers to make withdrawals and interest payments.

Gopax had been seeking investment since late 2022, following its suspension of principal and interest payments withdrawals.

Write to Jin-Woo Park at jwp@hankyung.com