WEMIX Price Plummets

The decline began earlier in the day, with Wemix falling from $0.7225 to $0.2757 within just 15 minutes. At the time of writing, the token had slightly recovered to around $0.36, still marking a 50% drop compared to the previous day.

The sharp fall was triggered by a joint delisting announcement from South Korea’s five leading crypto exchanges: Upbit, Bithumb, Coinone, Korbit, and Gopax. These platforms are the only exchanges in the country that allow fiat-to-crypto trading, effectively representing the entire domestic crypto market. As such, decisions made under the Digital Asset eXchange Alliance (DAXA) directly impact South Korea’s crypto ecosystem.

According to the official notice, Wemix trading will be halted on June 2, and withdrawals will end on July 2.

Trust Shaken After February Hack

In February, Wemix suffered a major setback when $6.2 million worth of tokens were stolen from Play Bridge, a cross-chain protocol. However, the Wemix Foundation waited four days to publicly disclose the breach, citing a need to “prevent market panic.” During this delay, the token’s price dropped 40% to $0.42.

In its latest statement, DAXA said that the Wemix Foundation had failed to sufficiently address the issues that initially led to its designation as an investment warning. Notably, Wemix was previously delisted in December 2022 when the number of circulating tokens exceeded the disclosed amount. This recent decision marks the second delisting of Wemix by Korean exchanges.

Statement and Buyback Plan from the Wemix Team

Following the delisting news, the Wemix team issued a statement to its community, expressing regret over the removal from local exchanges. The message included the following:

“The Wemix Foundation and Wemade remain steadfast in their belief in the growth of our ecosystem, regardless of domestic exchanges’ decision to end trading support. We will mobilize all available resources and capabilities to overcome this challenge swiftly and get the project back on track.”

The project also confirmed that it would continue its previously announced buyback program worth 10 billion Korean won (approximately $7.1 million), introduced in March to help stabilize the token’s value.

Meanwhile, Wemade’s stock fell 17.45% on Friday, closing at 23,650 won ($16.77). The company’s year-to-date decline now stands at 32.1%.

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The post South Korea’s Top 5 Exchanges Delist WEMIX: Price Plummets! appeared first on Coin Engineer.

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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The post Wemix Denies Allegations of Concealing $6.2M Hack appeared first on Coin Engineer.