Former CEO of WeMade Acquitted of Cryptocurrency Manipulation Charges

10 hours ago
Former CEO of WeMade Acquitted of Cryptocurrency Manipulation Charges

On July 15, 2025, the Seoul Southern District Court acquitted Jang Hyun-guk, the former CEO of WeMade, of charges related to the manipulation of the cryptocurrency WEMIX's circulation. The court ruled that the decline in WeMade's stock price was influenced by the overall stock market rather than solely by the performance of WEMIX. Jang was accused of misleading investors by falsely announcing the suspension of WEMIX coin liquidity in early 2022, which allegedly led to unquantifiable profits from stock price manipulation. The court noted that over 80% of WeMade's revenue in 2022 came from the gaming industry, and the significant rise in the company's stock price in 2021 was not solely dependent on WEMIX but was also affected by the success of released games. The court stated that while there may be a correlation, it does not imply a direct causal relationship between WEMIX's price and WeMade's stock. WEMIX has faced scrutiny for allegedly providing unfair advantages to early investors, including former lawmaker Kim Nam-kook. In May, the Digital Asset Exchange Association (DAXA) designated WEMIX as a risky investment and decided to delist it for violating capital market laws. Following the verdict, Jang expressed his apologies to WEMIX investors and WeMade shareholders for the distress caused. The prosecution had previously sought a five-year prison sentence and a fine of 200 million KRW for Jang, and they are currently reviewing the possibility of an appeal based on the court's ruling.

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