Wemix Foundation CEO Kim Seok-hwan has refuted claims that the company attempted to hide a security breach that led to losses exceeding $6 million.
In a press conference, Kim acknowledged the delayed disclosure but insisted it was a strategic decision to prevent further attacks and market panic.
The incident on February 28 saw hackers withdraw over 8.6 million WEMIX tokens from the platform’s Play Bridge Vault—a system facilitating cross-chain transfers. However, Wemix only issued an official statement four days later, drawing criticism from the public.
Kim explained that the attackers exploited a stolen authentication key from Nile, the company’s NFT platform. The breach allowed them to manipulate the system for two months before initiating a series of unauthorized withdrawals. While the hackers attempted 15 transactions, 13 were successful, with the stolen tokens later sold on exchanges outside South Korea.
Upon detecting the breach, Wemix swiftly shut down its servers and launched an internal investigation. The company also filed a formal complaint with the Cyber Investigation Team of the Seoul National Police Agency, which has since begun probing the case.
Kim defended the decision to withhold immediate disclosure, stating that announcing the hack prematurely could have exposed them to additional security risks. He also noted that the market had already absorbed the impact of the stolen assets and feared that a rushed announcement might have triggered further panic selling.
Addressing investors, Kim took full responsibility for the delayed disclosure, apologizing for any concerns it may have caused. He emphasized that the decision was his own and assured stakeholders that Wemix remains committed to strengthening its security measures.
Meanwhile, Christian Li, founder of stablecoin digital bank Infini, contacted the hacker responsible for stealing $49.5 million from the company’s wallets again. Li offered a white-hat agreement, proposing that the hacker return the stolen funds and keep 20% as a bounty, with no legal consequences.
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