'Wemade Faces Second Delisting Crisis After WEMIX 9 Billion Hacking'

Domestic game company Wemade is once again facing the risk of delisting. This is due to a hacking incident involving 9 billion KRW worth of its self-issued cryptocurrency WEMIX.

According to the game and virtual asset industry on the 5th, Wemade's subsidiary WEMIX Foundation announced on its website the day before, "On February 28, approximately 8,654,860 WEMIX coins were abnormally withdrawn due to a malicious external attack on the Play Bridge Vault." Play Bridge is a system that transfers WEMIX to other blockchain networks, and the wallet that stores virtual assets during the transfer process is called the "Play Bridge Vault."

According to Wemade, the attacker transferred WEMIX coins from the Play Bridge Vault to two external wallets in 13 transactions. These were sent to seven overseas global exchanges including KuCoin, BitMart, and Bybit, and most of the stolen WEMIX is estimated to have been sold.

Wemade explained, "We are investigating the cause and circumstances through our own analysis and cooperation with the external security firm Theory." They added, "Based on the initial cause identification, detailed analysis and tracking are underway." Furthermore, "We have officially reported to investigative agencies and requested the status of asset holdings, sales, and withdrawal details of the exchange accounts used by the attacker."

According to the cryptocurrency information site CoinMarketCap, the price of WEMIX, which was trading in the 900 KRW range until the day before the announcement, plunged about 35% to the 570 KRW range immediately after the announcement. As of 6:50 PM on the same day, it is trading around 668 KRW.

The Digital Asset Exchange Association (DAXA), a consultative body among domestic cryptocurrency exchanges, designated WEMIX as a cautionary trading item and suspended deposits the day before. DAXA explained the background of the cautionary trading designation, stating, "They made an insincere disclosure of important matters that could significantly affect users' reasonable investment decisions or the value of virtual assets, and there is a lack of clear explanation of the cause of the incident and compensation plans for victims."

DAXA's designation of cautionary trading items is a preliminary step that leads to suspension of trading support, i.e., delisting. Previously, WEMIX was designated as a cautionary investment item by DAXA in October 2022 due to issues with circulation disclosure, and after one extension, a delisting decision was made in November of the same year.

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