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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] Wemade is facing turmoil over issues surrounding its cryptocurrency, WEMIX. Following the indictment of Vice Chairman (and former CEO) Jang Hyun-guk for allegedly manipulating the circulation volume of WEMIX, the company is now being sued by current and former employees for damages totaling billions of won.
On August 9th, Wemade disclosed that 28 former and current employees filed a lawsuit at the Seoul Central District Court on July 29th, seeking compensation of approximately 16.1 billion KRW (about $12.6 million). The plaintiffs, who previously worked at Wemade's subsidiary, Wemade Tree, claim that they were promised WEMIX tokens as part of their compensation, but the company failed to fulfill this promise.
Wemade Tree was established in 2018 when Wemade launched its blockchain business and was responsible for issuing and listing the WEMIX tokens on cryptocurrency exchanges. In February 2022, Wemade Tree was merged into its parent company, Wemade.
Wemade stated that it plans to respond to the lawsuit through legal procedures.
In addition, Jang Hyun-guk is under investigation for allegedly misleading investors about the circulation volume of WEMIX during its issuance and sale, causing significant losses. Prosecutors claim that in January 2022, Wemade released a large amount of WEMIX into the market, leading to a sharp decline in the value of both the WEMIX tokens and Wemade’s stock. Jang then allegedly made a false statement that WEMIX token liquidation would cease, prompting many investors to buy the tokens. The prosecution believes Wemade continued to liquidate WEMIX tokens despite this assurance, using the funds for various investments and benefiting financially.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
