South Korean cryptocurrency exchange Gopax suspended all withdrawals and halted trading services on Friday following a hacking threat sent via email. The company stated that it is transferring the entirety of its virtual assets into offline cold wallets as a precautionary measure to safeguard client funds.
Services paused and emergency measures enacted
Gopax stopped deposit and withdrawal services at 2:55 p.m. local time, followed by a suspension of trading at 3:53 p.m. Open orders were canceled, and standard withdrawal functions on the web and mobile app are unavailable. Customers who wish to withdraw their cryptocurrencies must now submit manual requests through the company’s customer support center, where each request undergoes internal verification before processing.
To maintain the safety of user assets, Gopax has temporarily disabled direct withdrawals and pledged to move all digital assets to cold wallets. Those wishing to access their funds are required to contact customer support, with requests handled manually and subject to verification procedures.
While deposits were initially paused alongside withdrawals, some local Korean media outlets reported that deposit services resumed later in the day. However, withdrawals via standard web and app channels remain suspended as Gopax’s team works to complete the cold storage migration. The company has not yet provided a timeline for when trading or normal withdrawals will resume. No loss of customer assets has been reported according to the latest company updates.
According to an official from the exchange, the threat arrived by email from a party claiming the ability to breach Gopax’s systems. Although the legitimacy of the threat has not been confirmed, the company emphasized that the security measures were adopted to prevent potential incidents and protect customer funds. All requests for withdrawals must be approved manually during this period.
Mini dictionary: Cold wallet — A cold wallet is a cryptocurrency wallet that is not connected to the internet, providing increased protection from online attacks compared to hot wallets which operate online for quick access and transactions.
Ongoing security challenges in South Korea’s crypto sector
This development for Gopax comes amid heightened scrutiny of digital asset platform security in South Korea. The country’s Financial Services Commission has tightened oversight after a spate of cybersecurity breaches at both financial firms and crypto exchanges in recent months. Regulatory rules already require exchanges in South Korea to hold at least 80% of customer assets in cold storage to reduce risk exposure. Gopax’s full pivot to cold storage is intended to exceed these standards temporarily amidst the threat.
Earlier in the week, another high-profile incident occurred when hackers siphoned approximately $6.34 billion from Binance’s hot wallets. Law enforcement officials later linked the attack to a North Korean group. Binance took steps to restore withdrawals in phases and committed to covering affected customer losses from its own funds.
| Exchange | Incident | Action Taken | Funds Affected |
|---|---|---|---|
| Gopax | Hacking threat (unverified) | Suspend trading and withdrawals, move assets to cold storage | None reported |
| Binance | Confirmed hack | Restore withdrawals in phases, compensate losses | $6.34 billion |
| Mercado Bitcoin | Suspicious transfers | Freeze deposits and withdrawals | $40 million (preliminary) |
Separately, Brazil’s largest cryptocurrency exchange, Mercado Bitcoin, froze deposits and withdrawals after detecting suspicious activity, with early estimates placing the affected value near $40 million. Gopax’s preventive action contrasts with these cases, as no breach has been confirmed and its shutdown follows only a threat so far.
Gopax is a major South Korean cryptocurrency exchange catering predominantly to local retail investors. In the past few months, the company has suffered unrelated security challenges, including unauthorized access to some user accounts and data leaks in September and October. The firm has stated that these incidents are not believed to be connected to Friday’s hacking threat, though investigations remain ongoing.
With customer funds now placed in cold storage, users seeking to withdraw cryptocurrencies face delays while exchange staff manually process queries. The company has underscored that the temporary suspension is a necessary tradeoff to preserve customer assets, even if it disrupts regular activity and liquidity.
The coming days will test Gopax’s ability to manage withdrawal requests, complete the cold storage transition, and determine when it is safe to fully resume trading and withdrawal operations. Until then, the platform remains in emergency mode, prioritizing user asset security in response to the unverified hacking threat.
