South Korean cryptocurrency exchange GOPAX suspended cryptocurrency trading, deposits and standard withdrawals after receiving an email threatening a cyberattack. According to the exchange's official notices, services stopped at 2:55 p.m. local time (5:55 a.m. UTC) on November 6, with trading suspended at 3:53 p.m. (6:53 a.m. UTC). The company canceled all outstanding orders and moved to transfer customer assets to cold wallets, which operate without direct internet connection. As reported by crypto.news, customers can still request withdrawals through the support center, though each request requires manual verification and approval before processing.
Despite the hacking threat, GOPAX confirmed it had not detected any actual hacking attempt or cryptocurrency theft when services were suspended. According to a company representative speaking to South Korean newspaper Kyunghyang Shinmun, no hacking activity occurred at the time of the threatening message. The exchange described its decision as a preventive measure intended to protect customer funds while reviewing potential security risks. Under the temporary arrangements, customers cannot withdraw cryptocurrency directly through the GOPAX website or mobile application, requiring manual support center processing that could take longer than usual.
Following the threat, GOPAX began moving assets from internet-connected hot wallets into cold storage, taking the additional step of suspending trading while the transfer takes place. According to crypto.news data, the exchange held 80.54% of customer crypto assets offline in September, slightly above South Korea's minimum requirement of 80%. This compares to higher ratios maintained by other major exchanges during the same period: Upbit held 99.17%, Bithumb at 94.76%, and Coinone at 85%. The suspension follows instructions from South Korea's Financial Services Commission, which recently urged domestic exchanges to strengthen security arrangements after the $6.3 billion Binance security incident on October 29.
The suspension follows a series of cybersecurity incidents involving cryptocurrency platforms in South Korea. According to crypto.news, South Korean regulators held an emergency meeting with major exchanges on November 2 following the Binance attack, reviewing withdrawal approval systems, administrator privileges, and internal access controls. Officials subsequently urged exchanges to keep more customer assets offline and improve their ability to respond to suspicious transactions. South Korean authorities have been considering raising the minimum cold-storage requirement to as much as 99%, though no final decision has been announced. The incident renewed attention on hot-wallet security, with several trading platforms explaining their separation of customer funds from internet-connected systems.
