Calls are mounting in South Korea for Binance, the world’s largest cryptocurrency exchange, to compensate victims of GoFi, a deposit service operated by local exchange GOPAX, after a lawmaker raised the issue during a parliamentary committee this week.
Rep. Min Byung-dug of the ruling Democratic Party of Korea questioned Financial Services Commission (FSC) Chairman Lee Eog-won on Monday, seeking clarity on whether Binance intends to honor its reported pledge to reimburse investors.
The hearing followed the FSC’s recent approval of Binance’s long-delayed acquisition of GOPAX.
GoFi was an interest-bearing product that allowed users to earn yields on cryptocurrency deposits. However, after the 2022 collapse of FTX, customer assets worth around 150 billion won ($106 million) were frozen, affecting roughly 3,000 investors.
Min said compensation had been a key condition of Binance’s takeover but argued that no repayment plan had been presented so far, calling the deal “a merger not backed by capital.”
Binance first sought to enter the Korean market through its acquisition of GOPAX in 2023, agreeing to assume GoFi-related liabilities.
The deal was initially blocked by the Korea Financial Intelligence Unit (KoFIU) due to Binance’s previous anti-money laundering (AML) violations in the United States. Approval was granted only this month, after Binance reportedly resolved compliance issues with U.S. regulators.
Opposition lawmakers have questioned the timing of the approval, noting it came just four months after a new administration took office. Allegations of political influence have also surfaced, citing reports that a senior GOPAX executive is related to a high-ranking official in the Lee Jae Myung administration.
A GOPAX creditor group said investors have yet to receive a clear response from either Binance or GOPAX. “It has been a long time since the compensation issue first emerged. We are still awaiting their response,” the group said.
A GOPAX spokesperson said the company remains “fully committed to protecting users’ assets” and will provide details on repayment once the process is finalized.