A South Korean court released Jang Hyun-Guk, former CEO of Blockchain Gaming Firm Wemade, of manipulating the circulation of the Wemix Crypto token.
On Tuesday, local News Outlet News1 reported That the Seoul Southern District Court has decided on Jang does not intend to influence crypto market prices in a deceptive way.
This decision has cleared him a violation of the country’s capital market laws, marked a significant legal win for Jang, who is now working with the blockchain gaming company Nexus.
Prosecutors have accused Jang is incorrectly announced to stop extinguishing for Wemix tokens to stabilize prices and provoke investor confidence in possession. However, the court found that there was no clear evidence of the intent to manipulate the market.
Wemix token down 97% since its climax
On August 5, 2024, Jang was accused In the charges of manufacture and deleting information about the actual circulating -transferous supply of wemix tokens. He was accused of deception of consumers and failing to fulfill the revelation of token sales, despite the promise to stop selling tokens in February 2022.
Prosecutors admitted that under Jang’s leadership, Wemade was unable to sell more than $ 200 million in Wemix tokens in the market from February to October 2022, without complying with the requirements of disclosure of the South Korea Capital Markets Act. The company allegedly used tokens to invest in external funds and receive Stablecoin loans, using Wemix as collateral.
In response to the controversies, the Digital Asset Exchange Alliance, a trading team consisting of South Korea’s largest exchange, removed the Wemix token in December 2023, after the Seoul Central District court approved the transfer.
The controversy involving Jang hurt the investor’s confidence in the Wemade project. The wemix token is now trading at $ 0.61, a decrease of 97% from all times high $ 24.71 on November 21, 2021.
Despite the verdict, prosecutors can file an appeal to a higher court if they do not agree with the decision.
Cointelegraph took the wemade to comment but had not received a response before published.
Related: Bank of Korea to take ‘careful approach’ to the Bitcoin Reserve
Accused of wemix foundation of cover-up in the middle of the hack
Apart from the court case, the wemix token has faced with another controversyinvolving the allegations of a cover-up after a major crypto hack.
In Feb.
The hack resulted in more than $ 6 million in crypto losses. The company announced information days later, leading to allegations of a cover-up.
However, wemix foundation CEO Kim Seok-Hwan said the company had no intention of concealing the attack. He said the announcement was delayed to prevent the cause of the market in the market due to stolen ownership.
Despite Kim’s attempt to calm the markets, the price of the token fell nearly 40% days after the attack.
https://www.youtube.com/watch?v=GPWMOGCVLC
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