South Korean Prosecutors Search Two Companies Suspected of Participation in WEMIX Mass Liquidation

Odaily Planet Daily News South Korea Seoul Southern District Prosecutor’s Office seized and searched two companies that had participated in the large-scale liquidation of WEMIX within two days from August 3rd to 4th on charges of fraudulent circulation of the virtual asset WEMIX issued by the listed game company WeMade , but did not disclose which two companies. Prosecutors found that WeMade sold large quantities of WEMIX through the two companies and are understood to be investigating whether this was a transaction conducted without telling users the details. (Digital Asset) According to previous reports, in June this year, South Korean prosecutors launched a comprehensive mandatory investigation into the country’s listed game company WeMade and its WEMIX token market maker. , the company was charged with fraud, embezzlement and other crimes. This is the first time that the prosecution has launched a mandatory investigation of WeMade, but since 2021, WeMade has caused many controversies. Including November 2020 to January 2022, WeMade liquidated WEMIX worth 225.5 billion won without notifying WEMIX users, and used the funds to acquire a company. In addition, at the end of 2022, WEMIX's circulation was suspected of false disclosure, and it had a legal dispute with the country's trading platform. WEMIX was eventually delisted by several major encryption trading platforms in South Korea. It is understood that the prosecution not only searched and seized WeMade, but also searched and seized the market maker of WEMIX.