GOPAX halts crypto trading, withdrawals to move all assets to cold storage
GOPAX halts trading and withdrawals following a threatening email, citing regulatory recommendations to move assets to offline wallets.
Quick Look
- South Korean crypto exchange GOPAX suspended trading, deposits, and standard withdrawals following a hack threat email.
- The exchange plans to transfer assets to offline wallets, adhering to regulatory recommendations after recent security concerns.
AI-generated summary
Why It Matters
South Korean regulators have urged domestic exchanges to increase cold-wallet holdings following recent security incidents.
South Korean crypto exchange GOPAX suspended trading, deposits and standard withdrawals Friday after receiving an email threatening a hack, according to local newspaper Kyunghyang Shinmun.
A GOPAX representative told the newspaper that no hack or attempted theft had occurred at that point.
GOPAX said it halted deposits and standard withdrawals at 5:55 am UTC. Trading stopped at 6:53 UTC, according to a second announcement. All unfilled orders were canceled.
GOPAX said it plans to transfer all crypto assets to offline wallets to protect users following a series of leaks and hacking incidents affecting financial institutions. Its notices cited financial regulators’ recommendations.
Cointelegraph reached out to GOPAX for comment but had not received a response by publication time.
Customers can still request withdrawals through GOPAX’s support center, but the exchange warned that manual verification and approvals could delay processing.
The suspension came days after South Korea’s Financial Services Commission (FSC) urged domestic exchanges to increase cold-wallet holdings following the $6.3 billion Binance hack. South Korean exchanges must keep at least 80% of customer crypto assets in cold storage.
Financial Supervisory Service data previously showed that GOPAX held 80.54% of user assets offline at the end of September, near the required minimum.
In October, the FSC reported cybersecurity deficiencies at 130 of 555 financial companies reviewed nationwide. The regulator also identified GOPAX operator Streami and crypto exchange Prabang among 16 companies involved in earlier security incidents, prompting plans for tighter cybersecurity oversight.
South Korean exchange Prabang also suspended services after detecting abnormal withdrawals from its hot wallet on Oct. 24. The exchange reported about 100 million won ($70,000) in losses, according to Yonhap News Agency. Prabang said it would reimburse affected customers using company funds.
Open Questions
- When will GOPAX resume normal operations?
- Who sent the hack threat email?
