Binance allegedly sold user deposit claims of its South Korean subsidiary Gopax in Genesis Global at a significantly discounted rate to a third party without informing investors, South Korean publication Hankyung has reported.
This was done after Binance acquired a majority stake in Gopax and promised to fully compensate losses suffered from the collapse of Genesis Global Capital's cryptocurrency custody service, for which Gopax was exposed.
The total amount of damages amounted to 70 billion Korean won, and Binance and Gopax have compensated half of the losses.
According to a source:
"We paid with Bitcoin obtained by selling the Genesis claim at a low price to a third party, and we are delaying payment of the remaining 50% of the damage, saying we will pay it after the acquisition of Gopax is completed."