Binance, the password exchange, acquired a majority stake in GOPAX, the South Korean password exchange. The acquisition is financed by the Domain recovery Plan led by Binance.

It marks that Binance re-entered the Korean password sales market two years later according to the acquisition of GOPAX, one of the top five password exchanges in South Korea.

Binance announces return to Korea based on acquisition of GOPAX

According to Bloomberg News on Feb. 3, Binance, the password exchange, has already acquired the South Korean password exchange GOPAX. Last month, Binance announced that it had completed financial due diligence on the acquisition of GOPAX.

At a later stage of the talks, Binance hopes to buy a majority stake from CEOLee Jun-haeng, which Lee Jun-haeng owns 41.2 per cent of Gopax. Silbert's Digital Currency Group of Barry is the second largest shareholder in GOPAX.

When commenting on the deal, BinanceCEO Zhao Changpeng said:

I hope that this step in collaboration with GOPAX will further rebuild the Korean password and blockchain market industry.

BinanceCEO has been actively seeking to re-enter Korea since he left Korea in January 2021. South Korea is one of the largest data encryption economies in the world, with a talented talent base and entrepreneurial community, which is still a compelling sales market for Binance. South Korea's expansion is undoubtedly an important element for Binance to create a dominant position in the next wave of blockchain technology assessment and Web3 design.

GOPAX customers are severely hit by Genesis infection

The spread of FTX and Genesis seriously affected Binance's acquisition of GOPAX because Genesis stopped customer withdrawals and redemptions after FTX went bankrupt. GOPAXMust repay about $47 million to customers of the new asset management product.GoFi, which gets the impact of Genesis determining the termination of redemption.

Binance plans to invest in GOPAX to make it easier for customers to withdraw interest for GoFi payments for profitable goods.

"the ultimate goal of this deal is to support customers to ensure that all customers who need to revoke assets have the ability to do so," said Ling Yibo, chief operating officer of Binance.

Please also refer toBinance Hong Kong increases its dominance in the data encryption core area plan