Binance faced allegations in 2024 that Gopax, its South Korean affiliate, sold users’ claims against bankrupt crypto lender Genesis Global at a steep discount without their approval. South Korean news outlet Hankyung reported that the claims were sold for less than half their face value.
The dispute centered on Gopax’s GoFi service, which had exposure to Genesis Global Capital. When Genesis suspended withdrawals in November 2022, GoFi users were left unable to access their assets. Gopax’s liabilities to affected users were estimated at about 70 billion won.
How the Genesis claims became a problem
Binance became Gopax’s largest shareholder after acquiring a majority stake in February 2023. The deal was presented as part of Binance’s Industry Recovery Initiative and included a commitment to address losses linked to GoFi.
Binance announced its investment in Gopax in February 2023, after Genesis had frozen withdrawals. Genesis announced the withdrawal suspension in November 2022 as liquidity problems spread across the crypto industry following the collapse of FTX.
Genesis’s spot and derivatives trading and custody businesses remain fully operational. We continue to support our clients who rely on us during volatile market conditions to manage their risk and execute on their business strategies.
— Genesis (@GenesisTrading) November 16, 2022
According to the 2024 allegations, Gopax later sold the Genesis claims to a third party at a large discount. Critics argued that the decision transferred potential future recovery from the claims to the buyer while leaving Gopax users exposed to a larger shortfall.
Binance’s Industry Recovery Initiative had already provided 1.5 billion won toward the initial compensation effort. The controversy arose because subsequent recovery was reportedly handled through the discounted sale of the Genesis claims rather than simply through additional funding from Binance.
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The value of the claims changed sharply
The timing became particularly important as cryptocurrency prices recovered. The unpaid claims that had been valued at about 35 billion won at the market’s November 2022 low were later estimated at roughly 100 billion won as Bitcoin rose.
Genesis eventually reached a settlement with creditors as part of its bankruptcy proceedings. A New York bankruptcy court approved a $2 billion settlement with New York authorities, while Genesis’s broader bankruptcy distributions provided creditors with recoveries based on the assets and claims recognized in the case.
The episode highlighted a difficult problem for crypto exchanges offering yield products through third parties: customers may ultimately bear the consequences when the external lender fails, even when the exchange itself did not directly hold the assets.
Binance and Gopax still face the GoFi repayment issue
The regulatory situation has since changed. South Korean authorities approved Binance’s acquisition of Gopax in October 2025, removing a major obstacle that had delayed the deal.
But approval did not immediately close the GoFi dispute. In January 2026, Binance said it aimed to complete restitution during the year. By July, however, Binance co-founder Yi He said the company was still reviewing a repayment plan and had not set a specific timetable, citing the need to work within Korean legal and regulatory requirements.
The issue therefore remains relevant years after Genesis collapsed. For Gopax users, the central question is no longer simply how the Genesis claims were sold, but when and how the remaining GoFi losses will ultimately be addressed.
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