GOPAX halts crypto trading, withdrawals to move all assets to cold storage
South Korea’s GOPAX suspended trading, deposits and standard withdrawals after a hacking threat, with manual withdrawals available through support.
South Korean crypto exchange GOPAX has halted all trading and withdrawals following a hacking threat. The exchange informed users that trading ceased at 6:53 UTC and deposits were suspended at 5:55 am UTC on Friday, after receiving an email warning of an imminent cyber attack. However, a GOPAX representative clarified that no actual hack or theft had taken place.
All unfilled orders were canceled, and the exchange is transferring all crypto assets to offline wallets to safeguard user funds. This move follows recommendations from South Korean financial regulators and a series of leaks and hacking incidents affecting other financial institutions. The exchange is complying with the Financial Services Commission's (FSC) directive to increase cold-wallet holdings, which require exchanges to keep at least 80% of customer crypto assets in offline storage.
GOPAX had already met this requirement, holding 80.54% of user assets offline as of the end of September. The FSC had previously identified 130 out of 555 financial companies involved in cybersecurity deficiencies, including GOPAX operator Streami and crypto exchange Prabang, leading to tightened cybersecurity oversight. Prabang also suspended services after detecting abnormal withdrawals from its hot wallet on October 24, with a reported $70,000 loss.
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