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- Binance is reportedly set to reduce its stake in GOPAX exchange.
- The shares sale will involve South Korea cloud service provider MegaZone.
Binance is reportedly in final negotiations as it looks to reduce its shares in South Korea-based crypto exchange GOPAX.
According to local media outlet IT Chosun, Binance is set to sell its shares in the crypto exchange to MegaZone, the parent company of South Korean cloud provider Megazone.
The sale will see Binance reduce its stake in GOPAX from 72.6% to roughly 10%, IT Chosun reported.
Binance to reduce stake from 72.6% to under 10%
In March, Binance officially informed financial authorities that the exchange will seek to reduce its shares in GOPAX to allow for the reorganization. In this case, the stake will reduce from the majority of 72.6% to less than 10%.
An approval by financial authorities following this move will see Binance and GOPAX renew real-name accounts with the Jeonbuk Bank before August 11. On the other hand, reducing its stake allows Binance to bolster the local exchange with capital injection.
GOPAX continues to suffer capital erosion after incurring massive debts following FTX’s collapse in 2022. In its deal with the South Korean exchange, Binance agreed that it would settle the 56 billion won ($40.6 million) debt. This would however be subject to a nod from financial authorities for Binance as the largest shareholder.
The delay has since seen GOPAX’s debt spike to over 118.4 billion won ($85.8 million).