In 2023, Binance sold Gopax's customer claims to Genesis Global for less than half of their face value. This is reported by Hankyung, citing its own sources.
In February 2023, Binance acquired a controlling stake in the troubled South Korean exchange Gopax. One of the conditions of the purchase was to repay the losses of users of the GoFi product who suffered losses as a result of the bankruptcy of Genesis Global.
The latter's parent company, Digital Currency Group, was the second largest shareholder of the exchange.
Binance used funds from the "Industry Recovery Initiative" to acquire Gopax, for which the largest global exchange promised to allocate $1 billion. Compensation payments to GoFi users were supposed to be made from the same source.
However, Hankyung's sources claim that only the first round of claims repayment was conducted in this way. For the second, Binance used the proceeds from the sale of Genesis claims at a discount of more than 50%.
GoFi's customers lost a total of 70 billion won, or $57 million at that time, as a result of the bankruptcy of the landing platform. Their claims are reimbursed by about 50%.
Over the past time, digital assets have increased significantly in value and the amount of remaining claims against Gopax is already about 100 billion won.
In May, it became known that Genesis, by court decision, will distribute $3 billion in fiat and cryptocurrencies among creditors. This will amount to approximately 77% of the company's total liabilities. Gopax did not comment on this in any way, since they no longer had claims against the platform, which were sold without the knowledge of customers.
Binance does not renege on promises of compensation. But the journalists noticed that there is no time frame for repayment of the platform's obligations in the purchase agreement.
Recall that the office of the Attorney General of the State of New York (OAG) tripled the size of the alleged fraud to more than $3 billion in the case against Genesis, Gemini and Digital Currency Group.