Binance is preparing to repay victims of the GOFi liquidity crisis with a $90 million crypto fund, while positioning itself for a major expansion into the South Korean market.
Key Takeaways
- Binance has secured over $90 million in crypto to compensate GOFi users, matching the exact asset amounts lost during the 2023 freeze.
- The repayment wallet holds 775 BTC, 5,766 ETH, and other cryptocurrencies, pending final approval from South Korean regulators.
- Binance plans to integrate Gopax into its global standards and is considering a rebrand to strengthen its presence in South Korea.
- Strategic focus areas include stablecoins, tokenized real-world assets, and institutional services as Binance aims to compete with local giants Upbit and Bithumb.
What Happened?
After acquiring a 67% stake in the South Korean crypto exchange Gopax in 2023, Binance has unveiled a detailed plan to compensate GOFi users affected by the 2023 withdrawal freeze. The restitution wallet was disclosed after a series of regulatory approvals in late 2025, signaling Binance’s readiness to re-enter and lead the local crypto scene.
🚨 BINANCE UNVEILS $90M FUND AND ACCELERATES KOREA EXPANSION 🚨🇰🇷
— Giannis Andreou (@gandreou007) January 30, 2026
Binance is making major moves in South Korea, disclosing a $90.52 million compensation fund for GOFi victims while rapidly expanding its footprint through the GOPAX exchange 🏦🚀.
Key highlights of the expansion:… pic.twitter.com/twPOMdmq1c
Binance’s Road to Repayment
The crisis began when GOFi, a DeFi product offered by Gopax, froze withdrawals in 2023 following the collapse of its partner, Genesis Global Capital. The event left thousands of users unable to access their funds.
To resolve the crisis, Binance established a dedicated compensation wallet holding 11 types of cryptocurrencies, including:
- 775.11 BTC
- 5,766.62 ETH
- 706,184.46 USDC
This wallet mirrors the amount of crypto lost by users, not the fiat value, a key point given the sharp rise in crypto prices since the freeze. The total value is estimated to be over 130 billion won or roughly $90.52 million.
The crypto remains under third-party custody while Binance awaits final approval from several South Korean government agencies. The company is also finalizing a cost-efficient distribution plan to return assets to GOFi users by the end of 2026, though executives say they hope to complete it much sooner.
SB Seker, Binance’s Head of Asia-Pacific, told The Block:
Regulatory Breakthrough Unlocks Korean Expansion
After months of delays, South Korea’s Financial Services Commission finally approved Binance’s acquisition of Gopax in October 2025. This cleared the way for Binance to execute its strategic ambitions, including a plan to:
- Stabilize and upgrade Gopax’s technology and security.
- Possibly rebrand Gopax under the Binance name.
- Adapt offerings to South Korean regulation and market demand.
Despite lingering concerns over local rules that limit foreign exchange ownership to 15 to 20%, Binance remains confident. With a 67% stake in Gopax, it believes it can work within the evolving framework.
Building for Institutional and Payment Use Cases
Binance is doubling down on institutional services and payment infrastructure in South Korea, aligning with recent regulatory shifts. The country has:
- Lifted a nine-year ban on corporate crypto investment.
- Accelerated work on the Digital Asset Basic Act, expected to pass soon.
Binance’s local roadmap includes:
- Supporting won-pegged stablecoins for cross-border transactions.
- Launching tokenized real-world assets, starting with security tokens.
- Partnering with licensed Korean payment providers to enable inbound crypto transactions from foreign visitors.
- Expanding Crypto-as-a-Service and Institutional Loans, both rolled out globally in 2025.
Seker emphasized the opportunity: “Twenty-three percent of last year’s global growth came from institutional adoption. We think the same will happen if development takes up in Korea.”
CoinLaw’s Takeaway
In my experience, Binance’s move is more than damage control. It’s a strategic reset. By repaying users with actual crypto and not fiat equivalents, Binance is sending a strong message about user trust and long-term vision. I found the timing of this compensation plan smart, especially as Korea loosens crypto rules and opens doors for institutional investors. Binance sees the writing on the wall: South Korea could become Asia’s most powerful crypto market, and they’re positioning themselves to lead it. Whether they can catch up with giants like Upbit is uncertain, but their ambitions are clear and well-funded.
