South Korean cryptocurrency exchange GOPAX temporarily stopped trading, deposits, and standard withdrawals on Friday after receiving an email threatening a potential cyberattack, according to Kyunghyang Shinmun. The precautionary measure marks the latest response from local exchanges to increasing regulatory and security pressures.
Immediate suspension and asset protection steps
GOPAX stated it suspended deposits and standard withdrawals at 5:55 am UTC, followed by a halt in trading at 6:53 am UTC. The exchange also canceled all unfilled orders on the platform.
A GOPAX representative told Kyunghyang Shinmun that, as of the time of the announcement, there had been no actual hacking attempt or theft detected. The suspension, the exchange emphasized, was purely precautionary but necessary in light of the threat and recent incidents in the financial sector.
GOPAX announced its decision to transfer all digital assets to offline wallets, referencing a recent series of leaks and hacking incidents that have affected financial companies. The exchange cited guidance from financial regulators in support of this move.
The exchange explained that these steps were in line with recommendations from financial authorities, who have called for exchanges to bolster their defenses against cyber threats. Users were informed they could still request withdrawals through the support center, although manual approvals were likely to cause delays.
Heightened security standards in South Korea
This incident comes shortly after the Financial Services Commission (FSC) of South Korea urged domestic crypto platforms to increase the share of funds stored in cold wallets, especially after the recent $6.3 billion Binance hack. Current regulations require South Korean exchanges to hold at least 80% of customer assets in offline cold storage.
Data from the Financial Supervisory Service showed that, as of late September, GOPAX stored 80.54% of user assets in cold wallets, hovering just above the regulatory threshold.
In October, the FSC reported cybersecurity deficiencies at 130 of 555 financial institutions inspected across the country. GOPAX’s operator, Streami, was among 16 companies previously linked to security incidents, which prompted regulators to announce plans for stricter oversight.
On a related note, the local exchange Prabang halted its services after detecting abnormal withdrawals from its hot wallet on October 24. Prabang confirmed losses of around 100 million won (approximately $70,000) and assured clients that affected customers would be reimbursed using company funds.
CryptoAppsy for cold wallet monitoring
Given the current focus on cold-wallet ratios and exchange security, readers tracking platforms like GOPAX may benefit from CryptoAppsy’s real-time charts, which display live updates on asset flows and reserve shifts. This feature can help users stay informed if exchanges move funds between hot and cold storage, offering added transparency and timely alerts when operational changes occur.
Withdrawal requests remain available to customers via the GOPAX support center, with the platform noting that the required manual verification could result in delays to processing.
