The South Korean Financial Services Commission is delaying Binance’s acquisition of crypto exchange Gopax for reasons including the SEC lawsuit against it.
The FSC has postponed approving the transfer of ownership, according to local media outlet Newspim. The acquisition was first delayed over allegations of money laundering at Binance. But it’s now being delayed further due to the CFTC and the SEC lawsuits against the exchange.
The acquisition has an impact on some Gopax customers. Its product Gopay was left with bad debt after the collapse of crypto exchange FTX. Binance said it was planning to cover this shortfall.
Gopax claimed that if the US government did seize Binance’s assets, it wouldn’t affect the funds being used for making Gopay whole.
“Binance has bases in many places, and we understand that funds for Gopay repayments are coming from a holding company based in Ireland,” a spokesperson told Newspim. “The funds are not solely from Binance, which belongs to a holding company in the United States, but are a relief industry fund created by contributions from partners and early investors.”
Binance initially announced the acquisition in February, saying it had acquired a majority stake in the exchange. At the time, Binance said it was spending funds from its industry recovery initiative on the acquisition.
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Source: https://www.theblock.co/post/233446/south-korean-regulator-delays-gopax-acquisition-due-to-binance-sec-lawsuit?utm_source=rss&utm_medium=rss