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Jang Hyun-guk, Vice Chairman of Wemade. (Photo = Wemade) |
[Alpha Biz= Kim Sangjin] Wemade Faces Allegations of Fraudulent Transactions and Market Manipulation, With 3 Billion KRW WEMIX Sale Revealed in Court
Wemade, which is facing charges of fraudulent transactions and market manipulation, reportedly sold 300 billion KRW worth of WEMIX through a consignment trading agreement with Hyperlism, a firm that previously handled WEMIX sales, according to statements made during a court hearing on January 16. Jang Hyun-guk, former vice chairman of Wemade, denied any involvement in such sales through exchanges.
The third hearing in the case concerning violations of the Capital Markets Act was held on January 16 at 10:00 AM at the Seoul Southern District Court's Criminal Division 13. During the hearing, Jang and representatives from Wemade attended, while Oh Sang-rok, co-CEO of Hyperlism, testified for the first time as a witness.
The prosecution alleges that Jang falsely announced the suspension of WEMIX liquidity in January and February of 2022 to prevent a decline in the price of WEMIX and Wemade's stock. This led to the application of charges related to fraudulent transactions and market manipulation under the Capital Markets Act.
According to the prosecution, Wemade and Hyperlism signed a consignment trading agreement on June 20, 2020, regarding the sale of WEMIX. Following the agreement, Wemade sent over 100 million WEMIX to Hyperlism, which then sold the tokens and converted the proceeds into other cryptocurrencies, including 383 Bitcoins, 39,000 Ethereum, 70 million USDT, and 2 million USDC, amounting to approximately 3 billion KRW.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
