South Korean Regulators Demand Binance Repay $106M to GoFi Victims Following Gopax Takeover

Political pressure mounts as lawmakers target crypto giant over acquisition fallout.

THE ACQUISITION AFTERMATH

South Korean legislators aren't mincing words—they want Binance to cough up $106 million for investors burned by the GoFi collapse. The demand comes hot on the heels of the exchange's Gopax acquisition, creating regulatory fireworks in one of Asia's most crypto-hungry markets.

POLITICAL PRESSURE COOKER

Lawmakers turned up the heat this week, framing the repayment demand as a moral obligation rather than just a legal one. They argue Binance inherited this mess when it swallowed Gopax—and now it's time to clean house. The $106 million figure represents every single won lost by GoFi investors before the acquisition.

REGULATORY RECKONING

This isn't just about one exchange—it's becoming a test case for how global crypto giants handle local liabilities. Korean regulators watch with folded arms, probably wondering why crypto billionaires always need reminding that 'with great acquisition power comes great responsibility.'

The standoff reveals crypto's growing pains—global ambitions crashing into local realities, with real victims caught in between.

Binance’s next move could set market precedent

The renewed scrutiny comes after Binance finally completed its long-delayed acquisition of GOPAX earlier this month, clearing regulatory hurdles that had stalled the deal for over two years. The exchange initially agreed to acquire the South Korean exchange in early 2023 as part of a regional expansion plan. However, the Korea Financial Intelligence Unit (KoFIU) had blocked the acquisition, citing its past regulatory violations in the US, France, and India.

Approval was only granted after Binance reportedly resolved compliance issues with US authorities. Lawmakers now argue that the deal should have required immediate compensation of GoFi users as a condition for finalization.

Notably, Binance has previously compensated users in times of crisis. In October, the exchange reimbursed approximately $283 million to users impacted by a sudden market crash and token de-pegging event.

As calls for accountability mount, the exchange’s response to the situation could set a precedent for how global crypto firms handle user protections after mergers. A timely and transparent resolution may help rebuild trust while inaction risks triggering further regulatory blowback in one of Asia’s most active crypto markets.