GOPAX Exchange Suspends Operations Following Cyberattack Threat

South Korean cryptocurrency exchange GOPAX suspended its trading, deposit, and automated withdrawal services this Friday. The decision followed an email the company received containing threats of a potential cyberattack against its systems.

Company representatives stated that no theft or breach has occurred thus far. The measure aims to ensure the security of user assets by migrating them entirely to offline wallets, also known as cold storage.

This move follows recent recommendations from South Korean financial regulators. The country requires exchanges to keep at least 80% of client assets in environments disconnected from the internet to prevent losses during security incidents.

Data from the Financial Supervisory Service shows that GOPAX held approximately 80.54% of its assets offline in September. The company will now process withdrawals only manually through its support center, which may cause delays in requests.

The cryptocurrency sector in South Korea is facing a period of heightened scrutiny after cybersecurity flaws were identified at several financial institutions. Other local platforms have also reported recent issues, forcing a tightening of digital protection standards in the Asian market.