The Digital Asset Exchange Association (DAXA) decided to delist the cryptocurrency WEMIX. This marks the first instance of a 'delisting (delisted after relisting)' in the history of Korean blockchain. In response, the WEMIX Foundation has initiated a provisional lawsuit.
Kim Seok-hwan, the representative of the WEMIX Foundation, noted during an emergency press briefing held at Techno Park Tower in Pangyo, Gyeonggi Province, on the 3rd, "We cannot understand or accept this decision, so we will immediately file a provisional lawsuit and initiate legal proceedings."
Kim also stated, "Government agencies get hacked, and major IT corporations also get hacked," and added, "I would like to ask if all such corporations have been delisted or if they have faced existential threats." He argued that delisting WEMIX solely due to the hacking incident is inequitable.
Kim explained in detail the justification process that DAXA requested from the WEMIX Foundation. Notably, the last justification request was for WEMIX to have a security inspection conducted by a security consulting firm certified by the Korea Internet & Security Agency (KISA) and to submit the results. Kim pointed out, "If DAXA delists us citing security despite having submitted inspection results from a KISA-certified consulting firm, does that mean DAXA does not recognize KISA certification? We provided the results after having them inspected, so which experts did DAXA consult to make the delisting decision?"
Kim also demanded that DAXA clarify the criteria for delisting. He stated, "WEMIX has been communicating through media briefings, shareholder meetings, and investor (holder) briefings since being designated as a significant item, and after the delisting announcement, we issued an urgent statement and held another briefing today. So how has DAXA communicated? I want someone involved in the decision-making process to come forward and explain how the decision was made," he said. He added, "It is problematic for a self-regulatory body to proceed arbitrarily without providing any criteria or making the discussion process public."
In closing, Kim stated, "No matter what happens, Wemade's commitment to the WEMIX project remains unchanged. More than 300 personnel are currently engaged in the blockchain project," and added, "We are also exploring intellectual property (IP) sourcing in the United States. Our Japanese subsidiary is also strengthening its workforce to pursue new projects." He further stated, "We will prepare for Emire Global to prove our capabilities."
Earlier on the previous day, DAXA decided to delist WEMIX. DAXA is a council of five won-based cryptocurrency exchanges: Gopax, Bithumb, Upbit, Korbit, and Coinone. As a result of this decision, WEMIX transactions will be halted starting at 3 a.m. on June 2, and withdrawal support will also end on July 2.
WEMIX is a cryptocurrency issued by the domestic game company Wemade to build a blockchain game ecosystem. The direct cause of this delisting decision is the hacking incident that occurred on February 28. At that time, the WEMIX Foundation reported that "approximately 8.65 million WEMIX coins were withdrawn abnormally due to a malicious external attack on Play Bridge Vault." This amounts to roughly 9 billion won based on market value.
After that, DAXA designated WEMIX as a significant item on March 4 and extended its designation on the 18th of the previous month. However, DAXA decided to proceed with delisting. DAXA stated, "The foundation's justification documentation regarding the reasons for the significant item designation did not resolve the reasons for the designation," adding that it collectively assessed aspects related to the issuer's reliability and security and concluded that it did not meet the criteria for maintaining transaction support.
If WEMIX is delisted this time, it is expected to be recorded as the first case of 're-delisting' in the cryptocurrency market. Previously, in December 2022, WEMIX was once expelled from domestic exchanges due to issues with its circulation disclosure, but it was sequentially relisted starting in February 2023. Immediately after DAXA's decision to delist, the current price of WEMIX plummeted by more than 67% to 401 won, and Wemade's stock price also dropped by over 15%.