South Korean Lawmakers Press Binance to Compensate $106M GOPAX GoFi Victims After Acquisition

South Korean lawmakers are intensifying pressure on Binance to compensate roughly 3,000 investors affected by GOPAX's frozen GoFi funds, totaling around $106 million, following the collapse linked to the 2022 FTX meltdown. Rep. Min Byung-dug emphasized during a parliamentary hearing that compensation was a condition for Binance's acquisition of GOPAX, which was only recently approved after regulatory delays tied to Binance's past compliance issues. Despite Binance's acquisition completion, no clear repayment plan has been presented, leading to criticism that the merger lacks sufficient capital backing and raising suspicions of political influence in the approval timing. Additional concerns were raised about Binance's alleged connections to entities accused of money laundering and human trafficking, further complicating its legal and regulatory standing in South Korea. GOPAX has pledged commitment to protecting users’ assets and compensating victims but has yet to provide a detailed timeline or process. The controversy underscores broader regulatory and political tensions surrounding Binance's efforts to expand in the South Korean market.