Prominent South Korean Cryptocurrency Exchange Gopax Undergoes Major Restructuring

Prominent South Korean Cryptocurrency Exchange Gopax Undergoes Major Restructuring

In a recent development reported by Decenter, Gopax, a well-known cryptocurrency exchange based in South Korea, has initiated significant restructuring efforts, according to industry insiders.

During a board meeting held on the 4th of this month, Gopax approved a new restructuring plan that involves a transition from its current 4-person director system to a 5-person director system.

As part of this restructuring, CEO Lee Joong-hoon has stepped down from his position. Lee Joong-hoon, who assumed the CEO role on June 19, has faced criticism from major shareholder Binance regarding his leadership.

In light of these changes, Lee Joong-hoon will continue to carry out his existing responsibilities as the exchange adapts to its new leadership framework.

While the identity of the incoming CEO has not been officially disclosed, there is speculation that the appointment might come from within Binance, the prominent cryptocurrency exchange. Presently, Gopax employees have not been informed about the identity of the new CEO.

Binance’s involvement with Gopax has attracted attention. In February, Leon Poong, the representative of Binance’s Asia-Pacific region, was named as the representative of the Korean exchange. However, subsequent changes in Gopax’s board of directors led to conjecture about Binance’s intentions in the Korean market. Responding to these speculations, an exchange official affirmed Binance’s commitment to the Korean market.

Significantly, a lawsuit has been filed by investors and legal representatives of GoFi, a wealth management product associated with Gopax. They allege that regulatory obstacles prevented GoFi from resuming withdrawals, resulting in a substantial loss of $38 million.

In light of this situation, Binance had contemplated acquiring Gopax to facilitate the necessary liquidity for GoFi withdrawals, contingent upon regulatory approval.