The founder of South Korean cryptocurrency exchange Gopax, Lee Jun-haeng, has publicly demanded that Binance immediately repay users of the troubled GoFi yield service, escalating a major controversy that threatens the global exchange's ambitions in Asia's third-largest crypto market. Lee, who served as Gopax's CEO until Binance's acquisition in February 2023, took to social media platform X to insist that Binance must prioritize user compensation above all other considerations, including discussions about shareholder adjustments or capital increases.
The dispute centers on GoFi, a yield-generating service offered through Gopax that faced difficulties during the 2022 crypto market downturn, leaving users awaiting compensation for their locked funds. Binance's acquisition of Gopax was a strategic move to enter the South Korean market, but the unresolved GoFi liability has complicated this expansion. Lee has systematically refuted Binance's previous justifications for delayed repayment, including its May 2023 claim of having no legal responsibility, its September 2024 assertion that rising crypto prices complicated full repayment, and an October 2024 statement suggesting the matter depended on South Korean authorities' judgment.
Lee claims the Financial Intelligence Unit (FIU) has confirmed that no additional procedures or approvals are needed for victim compensation, directly contradicting Binance's positioning. He also notes that a lawsuit filed against him by a Binance subsidiary was dismissed. The core issues in dispute include the determination of legal responsibility, regulatory requirements for repayment, the validity of cited practical obstacles like foreign exchange costs, and whether business expansion should precede user compensation.
Binance completed its acquisition of Gopax in February 2023, marking its official re-entry into South Korea after withdrawing in 2021 due to regulatory challenges. The acquisition included taking on Gopax's liabilities, with industry observers viewing it as Binance's commitment to establishing a compliant presence. However, the unresolved GoFi compensation has become a persistent issue. South Korea represents approximately 10% of global cryptocurrency trading volume, making market access strategically valuable, but the country maintains one of the world's most comprehensive crypto regulatory frameworks emphasizing consumer protection.
The resolution will likely influence how future acquisitions address inherited liabilities in regulated markets and test whether cryptocurrency platforms can meet traditional standards of corporate responsibility while operating across multiple jurisdictions.
