Wemix CEO Denies Cover-Up Allegations on Hack

Wemix Foundation CEO Kim Seok-hwan stated that there was no intention to conceal the attack on the platform’s bridge system, which resulted in over $6 million in losses. Despite criticism over the four-day delay in announcing the breach, Kim argued that it was not an attempt to cover up the incident.

Reason for the Delay: Preventing Further Attacks

On February 28, Wemix’s Play Bridge Vault, a platform facilitating transfers between blockchain networks, was targeted by malicious actors. The attackers stole 8.6 million WEMIX tokens and sold them on major exchanges. However, the company only made the official announcement four days later.

According to CEO Kim, the delay in the announcement was to prevent further attacks and avoid panic selling in the market. Kim emphasized that releasing an early announcement before fully understanding the attack method could have led to more vulnerabilities for the company.

Details of the Attack: Stolen Authentication Key and Long Preparation

The company revealed that the hacker gained access by stealing the authentication key for Wemix’s Nile NFT platform’s service monitoring system. The attacker spent two months planning the attack and then initiated abnormal transactions.

The hacker attempted to withdraw funds 15 times, succeeding in 13 attempts, stealing 8.6 million WEMIX tokens, which were sold on exchanges outside South Korea.

Kim stated that as soon as they became aware of the hack, they shut down their systems and began an in-depth analysis. The company also filed a formal complaint with the Cyber Crimes Division of the Seoul National Police, and the investigation has started.

Investor Concerns and Market Reaction

Kim Seok-hwan took responsibility for the delay in the announcement and apologized to Wemix investors, saying that if any mistake was made, he should be held accountable. He emphasized that the decision to manage the situation was his.

Despite the delay, the market’s sharp decline could not be prevented. After the hack, the WEMIX token’s price fell by 39%, from $0.70 to $0.42. Currently, the asset is trading at $0.58, still 17% lower than before the attack.

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