After nearly a year of legal proceedings, former Wemade CEO Jang Hyun-guk has been cleared of market manipulation charges related to the circulation of the WEMIX token. The Seoul Southern District Court ruled on Tuesday that there was insufficient evidence to prove intent to deceive investors or influence crypto market prices.
Court Finds No Intent to Mislead Investors
Prosecutors had alleged that Jang falsely promised to halt the liquidation of WEMIX tokens in early 2022, intending to boost investor confidence and stabilize prices. They claimed Wemade, under Jang’s leadership, unfairly sold over $200 million worth of tokens without making proper disclosures — a potential violation of South Korea’s Capital Markets Act.
However, the court concluded that:
“There is no clear evidence that the defendant acted with the intent to manipulate market prices or mislead investors.”
Jang, who now works at blockchain gaming firm Nexus, has consistently denied wrongdoing. The verdict marks a significant legal victory for him and could influence future crypto-related prosecutions in South Korea.
WEMIX Token Down 97% From Peak
Despite the acquittal, the WEMIX token remains in turmoil. As of now, it trades around $0.61, down over 97% from its all-time high of $24.71 in November 2021.
Wemade’s transparency was heavily criticized when the Digital Asset eXchange Alliance (DAXA) — a group of major Korean exchanges — delisted WEMIX in December 2023. This came after accusations that the company misstated the circulating supply and failed to report large token sales used to secure stablecoin loans and external investments.
Wemix Hack Adds Fuel to the Fire
Adding to investor concerns, the Wemix Foundation faced allegations of a cover-up following a $6 million hack on February 28, 2025. Over 8.6 million tokens were stolen from the Play Bridge Vault, but the company delayed disclosing the incident, citing a desire to prevent panic in the market.
“We had no intention of hiding the hack,” said CEO Kim Seok-hwan. “We needed time to assess the situation and contain further risk.”
Still, the damage was done — the WEMIX price dropped nearly 40% in days following the attack.
What’s Next?
Although Jang’s acquittal clears him legally, the WEMIX project still faces a credibility crisis. The token’s steep decline, past regulatory issues, and delayed disclosure of the hack have shaken investor confidence.
Prosecutors may still appeal the ruling, meaning the legal saga may not be over. In the meantime, the Wemix Foundation must focus on restoring trust, improving transparency, and delivering consistent updates to prevent further erosion of support from the crypto community.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.