The former CEO of blockchain gaming firm Wemade, Jang Hyun-guk, has been acquitted of allegations that he manipulated the circulation of WEMIX tokens to influence market prices.
According to a Tuesday report by local outlet News1, the Seoul Southern District Court ruled that Jang did not intend to deceive investors or distort the market, clearing him of charges under South Korea’s Capital Markets Act. Prosecutors had claimed that Jang falsely announced a halt in WEMIX token liquidation to stabilize prices and boost investor confidence; however, the court found no evidence of such deliberate manipulation.
Jang, who now works with blockchain gaming company Nexus, was indicted in August 2024 for allegedly fabricating and omitting key information about WEMIX’s actual circulating supply. Authorities accused him of misleading consumers and failing to disclose token sales after Wemade pledged to stop offloading tokens in February 2022.
Between February and October 2022, prosecutors alleged that Wemade sold over $200 million worth of WEMIX tokens without proper disclosures, using the proceeds for external investments and stablecoin loans secured with WEMIX as collateral. This controversy severely dented investor trust, culminating in December 2023 when the Digital Asset eXchange Alliance—South Korea’s largest crypto exchange group—delisted WEMIX following a Seoul Central District Court decision.
The token has since struggled to recover, currently trading at $0.61—a steep fall from its record high of $24.71 reached in November 2021.
Despite Tuesday’s ruling, prosecutors retain the right to appeal to a higher court if they contest the acquittal.
Meanwhile, Wemix has faced further scrutiny this year following a security breach. In February, hackers stole over 8.6 million WEMIX tokens from the platform’s Play Bridge Vault, resulting in losses exceeding $6 million. The company delayed disclosing the attack, sparking accusations of a cover-up. However, Wemix Foundation CEO Kim Seok-hwan denied any concealment, stating that the announcement was postponed to avoid market panic.
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