Former Wemade CEO Acquitted in WEMIX Market Manipulation Case
South Korean court rules Jang Hyun-guk acted without intent to deceive amid $200M crypto controversy
SEOUL — A South Korean court has cleared Jang Hyun-guk, former CEO of blockchain gaming giant Wemade, of all charges related to alleged manipulation of the WEMIX token supply—a case that has gripped the nation’s digital asset sector for nearly a year.
On Tuesday, the Seoul Southern District Court ruled that Jang did not intentionally mislead investors or attempt to manipulate token prices, as alleged by prosecutors. The ruling marks a major legal victory for the former executive, who now works with blockchain game developer Nexus.
$200 Million in Token Sales Under Scrutiny
Prosecutors had accused Jang of violating South Korea’s Capital Markets Act, alleging that Wemade sold over $200 million worth of WEMIX tokens between February and October 2022 without transparent disclosures. The sales allegedly contradicted a public promise to halt token liquidation, made in February 2022.
Further, authorities claimed Wemade used the proceeds to invest in external ventures and secure stablecoin loans, using WEMIX as collateral—moves prosecutors said were material omissions aimed at artificially boosting market confidence.
However, the court found insufficient evidence of intent to deceive, and stated that Jang’s actions did not meet the legal threshold for market manipulation.
WEMIX Plunges 97% From Peak, Faces Lingering Fallout
Despite the court’s decision, the controversy continues to shadow the Wemade ecosystem. The WEMIX token, once valued at $24.71 in November 2021, now trades at $0.61—a staggering 97% decline.
In December 2023, the Digital Asset eXchange Alliance (DAXA)—a coalition of major South Korean exchanges—delisted WEMIX, following court approval, citing irregularities in the token’s reported circulating supply.
Foundation Under Fire Over Hack Allegations
The legal woes compound a second scandal involving a February 28 hack, in which over 8.6 million WEMIX tokens—worth more than $6 million—were siphoned from the Play Bridge Vault.
The Wemix Foundation faced backlash for delaying disclosure, prompting allegations of a cover-up. CEO Kim Seok-hwan responded that the delay was intended to prevent panic, not to mislead stakeholders. Nevertheless, WEMIX’s price dropped nearly 40% in the days following the eventual announcement.
Prosecutors have the right to appeal the court’s decision, potentially extending legal uncertainty for Wemade and its former chief.
Cointelegraph contacted Wemade for comment but had not received a response at the time of publication.
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