South Korean exchange Gopax needs to repay customers roughly $471 million in deposits locked up in Genesis Trading — which could be lost if Binance acquisition falls through.

Binance reportedly completed due diligence for the acquisition of Gopax on Jan. 2, and purchased a stake in Gopax’s largest shareholder, Lee Jun-hang, who owns 41.2% of the company.

According to Chosun on Jan. 6, Gopax is facing a shortfall of 600 billion won (approximately $471 million) from its deposits in Genesis Trading. The funds were reportedly locked in Genesis, before it suspended redemption on Nov. 16, 2022, due to the FTX fallout.

However, chances of redeeming the funds locked in Genesis are decreasing as the crypto lender is reportedly looking to file for bankruptcy.

“If the negotiations for Binance’s acquisition of Gopax shares fail, there is a high possibility that the damage to GoFi investors will become a reality.”

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