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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] South Korean game company Wemade’s cryptocurrency, WEMIX, is once again facing the risk of delisting after suffering a massive ₩9 billion ($6.7 million) hack.
According to the gaming industry on Wednesday, WEMIX Foundation, a Wemade subsidiary operating the cryptocurrency, announced on its website that 8,654,860 WEMIX tokens were illicitly withdrawn due to a malicious external attack on the Play Bridge Vault on February 28.
Play Bridge is a system that facilitates the transfer of WEMIX between different blockchain networks, while Play Bridge Vault serves as the wallet that holds these assets.
Wemade reported that the attacker transferred WEMIX tokens from the Play Bridge Vault to two external wallets in 13 separate transactions. These stolen tokens were then moved to seven global cryptocurrency exchanges, including KuCoin, BitMart, and Bybit, and most of them were likely sold.
Wemade stated, "We are analyzing the root cause and incident details through internal investigations and in collaboration with Tiori, an external security firm. A detailed analysis and tracking process is underway based on initial findings."
In response, the Digital Asset Exchange Alliance (DAXA), a coalition of major South Korean crypto exchanges, designated WEMIX as an 'Investment Warning Asset' and suspended deposits.
DAXA explained, "Wemade failed to transparently disclose a major issue that could significantly impact investor decisions and WEMIX’s value. Additionally, there is no clear explanation of the incident’s cause or a compensation plan for affected users."
This designation is one step away from full delisting.
WEMIX previously faced a delisting crisis in 2022 when DAXA flagged it due to discrepancies in circulating supply disclosures. After an extension, it was officially delisted in November 2022.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
