One of the five major virtual asset exchanges in Korea, Kopax (operated by Streami), has confirmed it has filed a lawsuit against its founder, Lee Jun-hyang, the former CEO. It is reported that Lee has made improper financial demands from Binance, the major shareholder of Kopax, several times since his resignation.
According to the virtual asset industry on the 1st, Kopax filed a complaint with the police in mid-April against the former CEO, Lee, for violation of the Capital Markets Act and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes. Kopax claims that there were procedural flaws due to insufficient explanations to shareholders when Lee sold his equity to Binance, and that during the contract with Binance to repay the debt of Kopay in 2023, unfair conditions were included, so Lee is currently demanding payment of his share of the proceeds instead of repaying the debt.
Kopax is currently facing operational difficulties due to the 'Kopay' debt issue, which became problematic in 2022, despite recent performance recoveries. Kopay is a fixed virtual asset deposit service provided by Kopax, where investors who deposit their virtual assets with the exchange receive their principal and interest after a certain period.
However, the bankruptcy of the global exchange FTX has caused Genesis, a virtual asset lending company that actually managed the assets deposited in Kopay, to decide to suspend principal repayments, leaving Kopax with a debt burden. In February 2023, when discussions began between Binance and Kopax regarding the debt following the Kopay incident, Lee resigned.
Kopax has stated that if Lee's guilt is confirmed through criminal proceedings, it will consider a civil lawsuit. Lee said, "Kopax's claims are completely false and I will respond with charges of defamation and false accusations," adding, "All shareholders have never received a single penny in compensation for the transfer of shares from Binance."