South Korean gaming firm Wemade is preparing for a new chapter after a Seoul court rejected its bid to stop the delisting of its cryptocurrency, WEMIX, from major domestic exchanges.
On May 30, the Seoul Central District Court dismissed Wemade’s injunction request to block the termination of WEMIX trading support. The decision clears the way for the full delisting of the token from local exchanges by June 2.
WEMIX to Be Delisted by June 2 After Seoul Court Rejects Wemade Appeal
The ruling comes months after the Digital Asset eXchange Alliance (DAXA), a consortium of five major Korean exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—announced that WEMIX would be removed following a February security breach.
The hack saw over 8.65 million WEMIX, worth around 9 billion won ($6.2 million), illicitly withdrawn from the company’s Play Bridge Vault, a key part of its Web3 infrastructure.
DAXA said Wemade failed to meet transparency and user protection standards after the incident. The foundation’s explanations and compensation plans were deemed insufficient.
“Despite the foundation’s explanatory data, the cause of the security breach and investor compensation plans remain unclear,” DAXA stated in its decision.
The exchanges flagged the project for review in March and April. By May, the group moved forward with a delisting plan, ending all trading support by June 2 at 3:00 p.m. KST. Withdrawal services for WEMIX holders will continue until July 2.
Wemade challenged the move in court on May 9, calling the decision unfair and filing for an injunction. However, with the court ruling against the firm, the delisting will proceed as planned.
WEMIX Apologizes to Users, Commits to Security Upgrades and Ecosystem Stability
In a public statement following the court’s decision on May 30, the WEMIX team expressed regret but promised to move forward.
“The WEMIX team is very sorry about the result of this injunction application, but we respect the court’s decision,” the statement read.
The company acknowledged the damage caused by the Play Bridge Vault hack and the resulting fallout. It also apologized to its users and community, promising to improve security and maintain operations across its blockchain gaming ecosystem.
“We have implemented measures to strengthen security and prevent recurrence,” the team said. “We have actively responded to resume services and stabilize the ecosystem.”
WEMIX serves as the core currency across Wemade’s blockchain-based gaming and DeFi platforms. The loss of local exchange listings poses a major challenge for the firm, though it has faced similar hurdles before.
WEMIX Delisting Deals Major Blow to Korean Trading, Re-Listing Blocked for One Year
In 2022, WEMIX was also delisted over token supply disclosure concerns, only to regain listings the following year.
Now, the team has indicated its determination to overcome the setback once again.
“No external factors can undermine the will of the WEMIX team to sustain and grow the WEMIX ecosystem,” the company said. “We will proceed with the planned business without a hitch and provide real value through games and services based on WEMIX.”
While details remain limited, the company said it would soon release short- and long-term plans to address the delisting and stabilize the ecosystem.
Despite recent setbacks, the WEMIX team appears committed to rebuilding.
With trading ending in just days and withdrawals closing in July, the next few weeks will be decisive for Wemade as it attempts to retain user trust and chart a path forward in global markets.
The impact of this delisting on WEMIX in South Korea is huge. Korean exchanges handled most of WEMIX’s trading volume, so losing access to local liquidity and investors is a major blow.
While WEMIX is still available on overseas platforms like Bitget and Bybit, those exchanges see very little trading compared to South Korea’s tightly concentrated crypto market.
To make matters worse, current regulations mean WEMIX can’t be re-listed on Korean exchanges for at least a year.
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