Gopax Halts Trading and Withdrawals Amid Hacking Threats

Gopax, a South Korean cryptocurrency exchange backed by Binance, has temporarily halted trading and all deposit and withdrawal services after receiving a hacking threat on November 6. The exchange announced that it is taking preventive measures to protect customer funds by transferring all held virtual assets to offline cold wallets, a strategy aimed at reducing exposure to potential cyberattacks.

The decision comes in the wake of increased security incidents within South Korea's crypto industry. Recent events include the theft of around 100 million won worth of virtual assets from Pravang and a data breach at Bithumb affecting thousands of customers. Additionally, Binance reported a significant hacking incident that resulted in approximately $6.3 billion in damages.

Gopax, which is one of South Korea's five major won-denominated crypto exchanges, has not reported any actual loss of assets related to the hacking threat. However, it has implemented a manual withdrawal process through its customer support center, as direct withdrawals via the website and app are currently unavailable.

The exchange's trading suspension began at 3:53 p.m. local time, shortly after it paused deposits and withdrawals at 2:55 p.m. Gopax has not provided a timeline for when services will resume. The exchange's recent actions reflect a broader concern over cybersecurity in the crypto sector, especially following a series of incidents that have drawn scrutiny from financial authorities.

As Gopax works to secure its platform and verify the legitimacy of the threat, it faces the challenge of managing customer withdrawals while ensuring the safety of user assets.

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