Prosecutors Conduct Search and Seizure at 3 Domestic Crypto Exchanges Over 'Wemix Circulation Manipulation' Case

Game company Wemade is under investigation by prosecutors for allegedly manipulating the circulation volume during the issuance and sale of 'Wemix Coin.' Wemix Coin has drawn attention as a coin held by Kim Nam-guk, a member of the Democratic Party of Korea, who is suspected of large-scale coin investments.

[Image source=Yonhap News]

According to legal circles on the 1st, the Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (acting head Chae Hee-man) conducted raids on three major coin exchanges?Upbit, Bithumb, and Coinone?to secure data related to Wemix circulation and transaction records.

This raid is related to the investigation of Wemade CEO Jang Hyun-guk, who was accused on the 11th of last month of fraud and fraudulent trading under the Capital Markets Act. More than 20 Wemix investors filed complaints with the prosecutors requesting an investigation into CEO Jang Hyun-guk.

Wemade is suspected of failing to properly disclose the circulation volume of Wemix. The core allegation is that a larger amount was circulated than previously disclosed by Wemade. Due to circulation volume issues, Wemix was delisted (trading support terminated) from coin exchanges such as Upbit and Bithumb at the end of last year.

Wemade filed a provisional injunction with the court to nullify the delisting decision, but it was dismissed. Wemix Coin was exclusively relisted on Coinone in February.

This content was produced with the assistance of AI translation services.