Wemix becomes 1st cryptocurrency to be delisted twice in Korea

Wemix Foundation CEO Kim Seok-hwan apologizes to investors during an emergency press briefing in Seoul, March 17, regarding a malicious external attack. Yonhap

Wemix, a cryptocurrency issued by the Korean game company Wemade, has become the first in the industry to be delisted for a second time.

On Friday, the Digital Asset Exchange Alliance (DAXA) — a coalition of Korea’s five major crypto exchanges — announced the delisting of Wemix via a notice posted on Bithumb.

DAXA stated that "the explanatory materials submitted by the foundation were insufficient to resolve the concerns that led to the investment warning designation."

It added, "After a comprehensive review of factors such as the issuer's credibility and security practices, we determined that Wemix no longer meets the standards for continued trading support, and have decided to terminate trading."

Wemix trading will be suspended starting at 3 a.m. on June 2. Withdrawal services will be discontinued on July 2.

As of 4:25 p.m., Wemix was trading at 473 won ($0.34) on Bithumb, down 62 percent from the same time the previous day.

On March 4, Wemade announced that approximately 8.65 million Wemix tokens had been unlawfully withdrawn following a malicious external attack targeting Play Bridge, the company’s proprietary asset exchange service. At the time, the stolen tokens were valued at around 9 billion won based on market prices.

However, the announcement was made four days after the incident occurred and failed to provide a clear explanation of the cause or a concrete compensation plan for affected users. As a result, DAXA designated Wemix under its investment warning status.

Wemade tried to lift the status by proposing a compensation plan focused on a market buyback and submitting explanatory materials to DAXA. However, DAXA ultimately decided to delist Wemix after nearly two months of review.

Market watchers expect that Wemade's core blockchain gaming business will also face disruptions. In its games, players use Wemix tokens to acquire in-game currency and items, both of which can be traded on external cryptocurrency exchanges.

In response to the latest delisting decision, Wemade stated that it "remains firmly committed to Wemix and its blockchain business" and will "actively pursue various initiatives, including additional listings on global exchanges."

This is not the first time Wemix has faced delisting. In December 2022, DAXA delisted the token from domestic cryptocurrency exchanges due to issues with circulation disclosure. It was later relisted, beginning with Coinone in February 2023, followed by Gopax, Korbit, and Bithumb, where it remained listed until now.