TL;DR
- Service Suspension: GOPAX halted deposits, standard withdrawals, and trading after receiving an email threatening a hack, though the exchange said no breach or theft had occurred.
- Asset Protection: The exchange plans to move all crypto assets into offline wallets and continues allowing withdrawals through manual support requests that may face delays.
- Regulatory Oversight: The exchange’s actions come amid increased cybersecurity scrutiny in South Korea and recent incidents affecting other financial and crypto platforms.
South Korean cryptocurrency exchange GOPAX temporarily suspended key services on Friday after receiving an email threatening a hack, according to local media reports. The platform halted deposits and standard withdrawals at 5:55 a.m. UTC before later stopping trading activity at 6:53 a.m. UTC. Despite the disruption, a GOPAX representative stated that no hack or attempted theft had occurred at the time of the announcement.
The exchange said the measures were taken as a precaution, with users affected by a broad suspension that also led to the cancellation of all unfilled orders. The decision comes during a period of heightened concern over cybersecurity risks facing South Korea’s financial and digital asset sectors.
GOPAX Takes Preventive Security Measures
According to official notices, GOPAX plans to transfer all cryptocurrency assets into offline wallets to strengthen user protection. The exchange cited a series of recent data leaks and hacking incidents affecting financial institutions, noting that the move aligns with recommendations from financial regulators.
Although standard withdrawals have been suspended, GOPAX said customers can still request withdrawals through its support center. Those requests will be subject to manual verification and approval procedures, which may result in slower processing times.
The latest action follows guidance from South Korea’s Financial Services Commission, which recently urged domestic exchanges to increase holdings stored in cold wallets after the $6.3 billion Binance hack. Regulations require exchanges to keep at least 80% of customer crypto assets in cold storage.
Regulatory Pressure Intensifies
Data from the Financial Supervisory Service previously showed that GOPAX held 80.54% of customer digital assets offline at the end of September, placing the exchange slightly above the regulatory threshold. The scrutiny surrounding GOPAX has increased following broader cybersecurity reviews across the financial sector. In October, the Financial Services Commission reported cybersecurity deficiencies at 130 of the 555 financial companies it reviewed nationwide.
Regulators also identified GOPAX operator Streami and crypto exchange Prabang among 16 companies connected to previous security incidents. The findings prompted plans for tighter oversight and stronger cybersecurity requirements. Recent developments involving Prabang underscore those concerns.
The exchange suspended services after detecting abnormal withdrawals from a hot wallet on Oct. 24 and reported losses of about 100 million won, or roughly $70,000. Prabang said affected users would be reimbursed using company funds, adding further urgency to security efforts across the industry as GOPAX reviews its defenses and GOPAX customers await the full restoration of services.
