'Wemix Coin Circulation Manipulation' Jang Hyun-guk Denies Charges in First Trial

Former Wemade CEO Jang Hyun-guk, who was indicted without detention on charges of manipulating the circulation volume of the virtual asset 'WEMIX,' denied the allegations in court.

[Image source=Yonhap News]

On the 24th, at the first trial held at the Seoul Southern District Court Criminal Division 13 (Presiding Judge Kim Sang-yeon), Jang's defense attorney argued, "Not only are the facts substantially different, but legally, the violation of the Capital Markets Act cannot be established."

The main issue in this trial is whether former CEO Jang falsely announced the suspension of WEMIX coin liquidity to prevent further declines in the coin and stock prices.

The prosecution explained, "When public opinion worsened due to the massive liquidity of WEMIX and the price of WEMIX and Wemade's stock fell, Jang declared the suspension of liquidity. However, he sent messages to executives suggesting that liquidity should continue, indicating he intended to proceed."

They added, "Jang continued liquidity in a way that was not disclosed externally, and investors deceived by his words decided to hold WEMIX, believing its price would rise in the future."

In response, Jang's defense attorney rebutted, "The premise that it influenced the WEMIX market price itself is incorrect, but even if it did, the claim that it manipulated Wemade's stock price by affecting WEMIX's market price cannot establish causality. This does not fall under socially fraudulent transactions or market manipulation regulated by the Capital Markets Act."

Jang is accused of falsely announcing the suspension of WEMIX coin liquidity from January to February 2022, causing deceived investors to purchase WEMIX coins, thereby obtaining immeasurable profits such as Wemade stock price gains and prevention of WEMIX coin price decline.

Jang's next trial date is scheduled for November 12.

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