Binance, a prominent cryptocurrency exchange, is in advanced discussions to sell its controlling stake in Gopax, a South Korean crypto exchange, to Megazone, a leading provider of cloud infrastructure solutions in South Korea. According to local news reports citing sources familiar with the situation, Binance, which acquired a 72.26% stake in Gopax last February, aims to reduce its ownership in Streami, Gopax’s operator, from 72.6% to around 10%. This move is reportedly part of Binance’s effort to enhance its corporate governance structure as mandated by financial regulators.
The reports suggest that Binance and Megazone are nearing the finalization of the transaction, expected to be completed by the end of July. A spokesperson from Megazone, commenting to the Chosun Daily, indicated that the acquisition of the stake is contingent upon government approvals.
Before Megazone, BF Labs (formerly known as City Labs), a South Korean publicly listed company, had expressed interest in acquiring Binance’s stake in Gopax. BF Labs initially acquired an 8.55% stake in Streami, Gopax’s operator, through a capital increase and stock purchase in September last year, becoming the second-largest shareholder and appointing its CEO as Gopax’s chief executive. However, BF Labs abandoned plans to increase its stake further due to financial constraints.
Binance acquired a majority stake in Gopax as part of its re-entry into the Korean market after withdrawing in 2021. The specific financial details of Binance’s stake acquisition were not disclosed.
Reports indicated that Gopax’s parent company, Streami Inc., was among the top ten creditors of the insolvent crypto lender Genesis Global before Binance’s involvement. Additionally, Digital Currency Group, the parent company of the U.S. crypto lender, held the second-largest stake in Gopax.