The recent decision by the cryptocurrency investment bank Genesis to halt withdrawals and new loan offerings has disrupted services on the Gopax trading platform, signaling that the crypto chaos is finally having an impact on South Korean exchanges.
Platforms in the country have, up until very recently, seemed immune to the fallout from the demise of FTX, in part because they don’t print their own coins.
According to YTN, Gopax stated that it had postponed paying principal and interest to customers who use its GOFi staking services. Together with Genesis Global Capital, the product was created.
According to Gopax, “our business partner Genesis Global Capital” provides its GOFi products.
The business claimed that it had approached Genesis to repay all of the cryptoassets belonging to GOFi customers “prior to” the American company’s announcement on Wednesday.
Additionally, Gopax asserted that by staying “in constant communication” with Genesis and its owner, the Digital Currency Group, it would hasten repayments.
The fact that the DCG owns a 14% stake in Gopax adds a little bit of complexity to the situation.