- WEMIX cryptocurrency will be delisted from all domestic South Korean exchanges by June 2, 2023, following a decision by the Digital Asset Exchange Association (DAXA).
- The delisting follows a security breach in February where approximately 8.6 million WEMIX coins (worth about 9 billion won) were stolen in an attack on the Play Bridge Vault.
- This marks the second time WEMIX has faced delisting from Korean exchanges, having previously been removed in December 2022 over circulation disclosure issues.
DAXA announced on May 2 that WEMIX, the cryptocurrency issued by game developer Wemade, will be delisted from all domestic South Korean cryptocurrency exchanges. Trading support for WEMIX will cease at 3 p.m. on June 2, with withdrawals becoming impossible after 3 p.m. on July 2. The decision affects all exchanges where WEMIX is currently listed, including Bithumb, Coinone, Korbit, and Gopax.
Security Breach Triggers Delisting
The Digital Asset Exchange Association, a consortium of five major Korean virtual asset exchanges, cited inadequate disclosure of crucial information as the primary reason for the delisting. According to DAXA, Wemade failed to properly disclose “important information that could significantly affect users’ rational investment decisions or the value of virtual assets.” The association also noted a lack of clear explanation regarding the cause of a recent security incident and compensation plans for affected users.
The security breach in question occurred on February 28, when approximately 8.6 million WEMIX coins were “abnormally withdrawn due to a malicious external attack” on the Play Bridge Vault, as announced by Wemix Foundation (WEMIX PTE. LTD) on its website in March. Play Bridge is a system that enables WEMIX transfers to other blockchain networks, with the Vault functioning as a storage wallet during the transfer process. The stolen coins were valued at approximately 9 billion won based on WEMIX’s market price at the time.
History of Regulatory Challenges
This marks the second time WEMIX has been removed from Korean exchanges. In December 2022, DAXA previously delisted the cryptocurrency due to issues with circulation disclosure. After that expulsion, WEMIX managed to return to the Korean market, securing relistings on Coinone in February 2023, followed by Gopax, Korbit, and Bithumb.
In response to the latest delisting decision, a representative from Wemade stated, “Based on our firm commitment to WEMIX and blockchain business, we will actively pursue various initiatives, including additional listings on global exchanges.” This indicates the company’s intention to focus on international markets following its second removal from Korean trading platforms.
The blockchain game-related cryptocurrency, developed by the Korean game company Wemade, will now need to find alternative markets as it faces another significant setback in its home country’s cryptocurrency ecosystem.
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