FTX contagion in S.Korea: GOPAX halts Genesis-backed DeFi

South Korean crypto exchange GOPAX has halted withdrawal of principal and interest payments in its decentralized finance (DeFi) service GOFi, which brokers products from global crypto lender Genesis Global Capital, LLC., the exchange announced on Thursday in Asia.

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Fast facts

  • The suspension at GOFi is prompted by partner Genesis Global Capital, which halted redemptions and new loan originations at lending arm Genesis Global Trading, GOPAX said in its announcement.

  • Genesis Global Capital announced the suspension on Wednesday, citing “abnormal withdrawal requests” following the public collapse of FTX last week. Recent reports say the global crypto lender is seeking a US$1 billion emergency loan by Monday.

  • GOPAX said it had requested Genesis to return all GOPAX user assets before Genesis made the announcement but has not received the repayment, for which the exchange says it is communicating with Genesis and its mother company, Digital Currency Group (DCG).

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