The Seoul Southern District Prosecutor's Office conducts searches and seizures on two companies suspected of involvement in the large-scale liquidation of WeMade's virtual asset, WEMIX.
South Korea's Seoul Southern District Prosecutor's Office has searched and seized two companies for their alleged participation in the fraudulent circulation of virtual asset WEMIX, issued by listed game company WeMade. The large-scale liquidation took place between August 3rd and 4th. The specific companies have not been disclosed, but prosecutors suspect that WeMade sold a large amount of WEMIX through these two firms without informing users of the transaction details.
Earlier this year in June, South Korean prosecutors launched a comprehensive compulsory investigation into WeMade and its WEMIX token market maker. The company faces charges of fraud, embezzlement, and other crimes. This marks the first time the prosecution has conducted a mandatory investigation into WeMade, a company that has been embroiled in numerous controversies since 2021.
These controversies include WeMade's liquidation of 225.5 billion won worth of WEMIX without notifying users, using the funds to acquire another company between November 2020 and January 2022. Additionally, WEMIX faced legal disputes over alleged false disclosure of circulation and was eventually delisted by several major South Korean crypto exchanges. The prosecution has reportedly searched and seized not only WeMade but also WEMIX's market maker.
