GOPAX halts trading, withdrawals after hack threat, plans cold storage move
In brief
- GOPAX halted deposits and standard withdrawals at 5:55 am UTC; trading stopped at 6:53 UTC.
- No hack or attempted theft had occurred, a GOPAX representative told Kyunghyang Shinmun.
- GOPAX plans to move all crypto assets to offline wallets, citing regulators' recommendations.
- Withdrawals remain possible via GOPAX's support center, though manual checks could delay processing.
What GOPAX shut down, and when
According to GOPAX's notices as reported by Cointelegraph, the exchange halted deposits and standard withdrawals at 5:55 am UTC. Trading stopped at 6:53 UTC, per a second announcement. All unfilled orders were canceled.
Withdrawals aren't fully frozen, though.
Customers can still request withdrawals through GOPAX's support center, but the exchange warned that manual verification and approvals could delay processing. GOPAX said it's transferring all crypto assets to offline wallets to protect users, pointing to a series of leaks and hacking incidents affecting financial institutions. Its notices cited financial regulators' recommendations. Cointelegraph said it reached out to GOPAX for comment and hadn't received a response by publication time.
Regulators were already pushing on cold storage
The suspension came days after South Korea's Financial Services Commission (FSC) urged domestic exchanges to increase cold-wallet holdings. South Korean exchanges must keep at least 80% of customer crypto assets in cold storage. GOPAX wasn't far above that line: Financial Supervisory Service data showed it held 80.54% of user assets offline at the end of September (just over half a percentage point above the minimum).
The exchange was already on the FSC's radar. In October, the regulator reported cybersecurity deficiencies at 130 of 555 financial companies reviewed nationwide, and it named GOPAX operator Streami and exchange Prabang among 16 companies involved in earlier security incidents. That finding prompted plans for tighter cybersecurity oversight.
Prabang's hot wallet incident
Prabang is the closer comparison here. The exchange suspended services after detecting abnormal withdrawals from its hot wallet on Oct. 24, and it reported about 100 million won ($70,000) in losses, according to Yonhap News Agency. Prabang said it would reimburse affected customers using company funds.
GOPAX's position is different. Its representative's account, via Kyunghyang Shinmun, is that nothing had been hacked or stolen when the exchange pulled trading and moved to put user assets offline.
Frequently asked questions
Can GOPAX users still withdraw their crypto?
Standard withdrawals are suspended, but customers can still request withdrawals through GOPAX's support center. The exchange warned that manual verification and approvals could delay processing.
Was GOPAX hacked?
A GOPAX representative told Kyunghyang Shinmun that no hack or attempted theft had occurred at that point. The exchange suspended services after receiving an email threatening a hack.
How much crypto do South Korean exchanges have to keep in cold storage?
South Korean exchanges must keep at least 80% of customer crypto assets in cold storage. Financial Supervisory Service data showed GOPAX held 80.54% of user assets offline at the end of September.
