Mon, May 27, 2024 at 19:25

• 

  Joy

  • Hey Annie!

  • Have you heard about the latest drama with Binance and the South Korean crypto exchange Gopax?😲

  • 
• Annie

  • Oh no, what happened this time?😟

  
• 

  Joy

  • Well, today Binance sold the asset claims of Gopax victims at less than half their face value.

  • This has led to huge financial losses for investors.😢

• Annie

  • That's terrible!

  • Didn't Binance promise to fully compensate the victims?🤔

  
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• 

  Joy

  • Exactly!

  • When Binance acquired a majority stake in Gopax, they committed to compensating investors for about KRW 70 billion, which is around $52 million.

  • But instead of using their funds, they sold the victims' asset claims at a big discount.😤

  • 
• Annie

  • Wow, that's a huge betrayal.

  • Why did they do that?😠

  
• 

  Joy

  • Apparently, it was part of their strategy to manage Gopax's liabilities.

  • They used the Industrial Recovery Fund (IRI) for the first payment but sold Genesis claims at a low price to cover the rest.

  • And now, they're delaying the remaining payments.😑

• Annie

  • So, how much have the losses increased because of this?😨

  
• 

  Joy

  • The debt to GoFi has now increased to an estimated KRW 100 billion, which is around $75 million, excluding existing repayments.

  • And this happened while cryptocurrency prices were rising, making the losses even worse.😬

• Annie

  • That's a massive gap!

  • What about other exchanges like Genesis and Gemini?

  • How are they handling their compensations?🤷‍♀️

  
• 

  Joy

  • Good question!

  • Genesis had its bankruptcy compensation plan approved by a U.S. court last week and committed to returning 77% of the $3 billion in bond funds to creditors.

  • Gemini plans to compensate 97% of its affected customers.

  • But Gopax hasn't made any official statements yet.😕

• Annie

  • That's quite a difference.

  • Why hasn't Gopax said anything?🤔

  
• 

  Joy

  • It's really frustrating.

  • Gopax's board, which includes Binance reps, has been accused of withholding information about the source of funds for compensations.

  • This secrecy and the 50% discount on Genesis claims have made investors really angry.😡

• Annie

  • I can see why.

  • What are the authorities doing about this?🕵️‍♀️

  
• 

  Joy

  • The Financial Services Commission (FSC) of South Korea is reviewing Gopax's executive changes, including appointing Binance personnel as directors.

  • They've also asked Binance for more info on allegations of money laundering and other concerns.🧐

• Annie

  • Sounds like a big mess.

  • Do you think this news is bad for the market?📉

  
• 

  Joy

  • Definitely a bad sign.

  • This kind of news shakes investor confidence and could lead to more volatility in the crypto market.

  • It's a reminder of the risks involved in these investments.😔

  • To sum up, this article is considered a 😱Bearish for investors!!