Henry Chang, Vice Chairman of Wemade

 

 

[Alpha Biz= Paul Lee] A Seoul court is set to deliver its first-instance verdict on July 15 in the case against Henry Chang, former CEO of Wemade (currently CEO of Nexusth), who was indicted on charges of manipulating the supply of WEMIX, a virtual asset issued by the company.



The Seoul Southern District Court's Criminal Division 13, presided over by Judge Kim Sang-yeon, will announce its decision this afternoon in a case where both Chang and Wemade were charged with violating the Capital Markets Act.



Prosecutors allege that Chang falsely announced in early 2022 that the company would halt the liquidation of WEMIX tokens. The misleading statement allegedly prompted investors to purchase the tokens, thereby propping up both the token’s market price and Wemade’s stock value. Despite this public declaration, Chang is accused of having liquidated approximately KRW 300 billion worth of WEMIX between February and October 2022 via fund placements and collateralized loans.



This increased the actual circulating supply of WEMIX beyond what had been disclosed to cryptocurrency exchanges, ultimately leading to the token’s delisting in December 2022.



Chang’s legal team argues that his pledge to halt “liquidation” only applied to open-market token sales—not to external investments or other uses of the tokens.



At the final hearing in April, prosecutors requested a five-year prison sentence and a KRW 200 million fine for Chang. They also recommended a KRW 500 million fine against Wemade.



The gaming industry, particularly players in blockchain-based “Play-to-Earn” (P2E) games, is closely watching the outcome. WEMIX was once a high-profile blockchain gaming token, but was delisted again in May 2024 following a hacking incident and ongoing scrutiny from the Digital Asset eXchange Alliance (DAXA).



If the court returns a guilty verdict, industry experts expect WEMIX to suffer a significant credibility blow, possibly prompting additional investigations by South Korea’s financial regulators.

 

 

 

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