GOPAX, a leading South Korean cryptocurrency exchange, has temporarily halted trading, deposits, and standard withdrawal operations after a hack threat was received via email on Friday. The exchange announced that the decision was a proactive measure to safeguard user assets.
Operations Suspended in Stages
The exchange suspended deposit and standard withdrawal services at 08:55 local time. About an hour later, trading activities were put on hold. All pending, unexecuted orders within the system were also canceled.
A GOPAX spokesperson stated that no actual hacking incident or theft attempt has been detected at this stage.
To bolster asset security, GOPAX plans to move all cryptocurrency assets to offline wallets. This move aligns with recommendations from financial regulators in response to recent data breaches and cyberattacks targeting financial institutions.
Although the standard withdrawal channel is closed, customers can still request withdrawals through the support center. However, GOPAX warns that due to manual verification and approval processes, some delays may occur.
Rising Regulatory Pressure
This development comes only days after South Korea’s Financial Services Commission urged local exchanges to increase their cold wallet asset ratios. Currently, crypto exchanges in the country are required to store at least 80% of customer assets offline.
GOPAX noted the planned transfer of all crypto assets to offline wallets is a strategy to protect users, following breaches and hacking incidents affecting financial institutions.
Previous reports from the Financial Supervisory Service indicated that as of the end of September, GOPAX held 80.54% of its user assets in offline wallets, barely exceeding the legal minimum threshold.
In such scenarios, participants closely monitor exchanges’ withdrawal flows and official announcements. By using platforms like CryptoAppsy, one can track related coin news and price alerts on a single screen, swiftly assessing the potential market impact of new statements from GOPAX.
Similar Security Incidents Highlighted
In October, the Financial Services Commission disclosed that 130 out of 555 financial firms nationwide had cyber security deficiencies. Among these were GOPAX’s operator Streami and the cryptocurrency exchange Prabang, previously named in connection with 16 companies targeted for stricter oversight.
Meanwhile, South Korea’s Prabang exchange also halted services on October 24th, following unusual withdrawals from its hot wallet. According to Yonhap, the incident resulted in around 100 million won, approximately $70,000 in losses. Prabang has stated it will compensate affected customers using company funds.
