As a seasoned analyst with over two decades of experience in the finance and technology sector, I find the indictment of Chang Hyun-guk, former CEO of Wemade, quite disheartening. It’s a stark reminder that even in the rapidly evolving world of blockchain and crypto, transparency and integrity remain paramount.
In a recent development, the ex-CEO of Wemade, Chang Hyun-guk, has been officially accused by South Korean authorities for allegedly misrepresenting and hiding information regarding the distribution of Wemix tokens.
South Korean authorities have accused and charged the ex-CEO of gaming firm Wemade, Chang Hyun-guk, for allegedly falsifying and concealing details about the distribution of Wemix tokens, which are related to the company.
On August 5th, I learned that the ex-CEO of Wemade is facing charges for misleading me as an investor. The accusation states he didn’t disclose significant transactions of Wemix tokens, despite his commitment in February 2022 to halt such sales and offer clarity on token circulation data. As reported by Korea JoongAng Daily, this lack of transparency is a serious concern for all of us who trusted him with our investments.
The legal proceedings against the Korean gaming giant, known for its roots dating back to 2000, were initiated almost a year after investors initially raised concerns in court in May 2023. This company began issuing Wemix tokens in 2020 to fund its play-to-earn video games. The report states that they sold about 108 million Wemix tokens from November 2020 to November 2021, earning an estimated ₩290 billion ($210 million). In response, the company announced a halt to further token sales and promised to share circulation data.
Wemade continue selling tokens
Nevertheless, South Korean authorities claim that Wemade continued to market Wemix tokens valued at approximately 300 billion won from February to October 2022 without adhering to disclosure guidelines. The company is additionally under suspicion for employing these tokens to invest in external funds and acquire loans by offering Wemix as security, according to the report.
Due to regulatory issues, Wemix was removed from the roster of Korea’s leading five cryptocurrency exchanges, which make up the Digital Asset eXchange Alliance. This action was taken following certain actions by Wemix. However, after Wemade clarified that they were no longer offering the token for sale, it was reinstated on these exchanges. Despite stepping down as CEO in March, Chang Hyun-guk continues to serve as Wemade’s vice president.
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2024-08-06 15:22