When an exchange faces threats, one practical step is to move customer assets into offline storage. South Korean platform GOPAX took this approach after receiving a hack threat via email.
According to local newspaper Kyunghyang Shinmun, the exchange suspended trading, deposits, and standard withdrawals on Friday. A GOPAX representative told the newspaper that no hack or attempted theft had occurred at that point.
The exchange halted deposits and standard withdrawals at 5:55 am UTC. Trading stopped at 6:53 UTC, with all unfilled orders canceled. GOPAX stated it plans to transfer all crypto assets to offline wallets to protect users, citing a series of leaks and hacking incidents affecting financial institutions and following financial regulators’ recommendations.
Cointelegraph reached out to GOPAX for comment but had not received a response by publication time. Customers can still request withdrawals through the support center, though the exchange warned that manual verification and approvals may cause delays.
The move comes days after South Korea’s Financial Services Commission urged domestic exchanges to increase cold-wallet holdings in the wake of the $6.3 billion Binance hack. Local rules require exchanges to keep at least 80% of customer crypto assets in cold storage. Financial Supervisory Service data showed GOPAX held 80.54% of user assets offline at the end of September, close to the minimum.
In October, the FSC reported cybersecurity deficiencies at 130 of 555 reviewed financial companies. The regulator identified GOPAX operator Streami and crypto exchange Prabang among 16 firms involved in earlier security incidents, leading to plans for tighter oversight.
Separately, Prabang suspended services after detecting abnormal withdrawals from its hot wallet on Oct. 24. The exchange reported about 100 million won ($70,000) in losses, according to Yonhap News Agency. Prabang said it would reimburse affected customers using company funds.
Source (published 2026-11-06)
Related reading: South Korea seeks 4th crypto tax delay, targets 2029 start.
