The prosecutor's office raided the offices of blockchain game developer WeMade
Date: 2023-07-01 Author: Karina Ziganova Categories: IN WORLD
South Korean prosecutors have raided the offices of WeMade, a South Korean blockchain game developer. This is reported by the Digital Asset portal.
The 1st Financial Crimes Investigation Division of the Seoul Southern District Prosecutor's Office has launched a large-scale investigation into WeMade. The agency wants to check whether the company violated capital markets laws or committed any fraudulent activities.
The investigation began after a series of complaints from defrauded WeMade investors who had invested in the native token WEMIX. They accused the developer of fraud and misuse of money.
Not the first WeMade scandal
Previously, the company appeared in several scandals at once. In particular, from November 2020 to January 2022, developers liquidated WEMIX tokens worth 225.5 billion won without notifying users.This money was then used to acquire blockchain game developer SundayToz.
In 2022, the company's management was suspected of fraud with WEMIX. After that, some major South Korean crypto exchanges delisted the token.
WeMade CEO Jang Hyun Guk was also accused of spending 12 billion won ($9.2 million) corporate funds to buy an apartment complex that he turned into a personal residence.
Searches in the offices of Upbit and Bithumb
Last month, South Korean prosecutors raided the offices of two cryptocurrency exchanges — Upbit and Bithumb — over an investigation into local MP Kim Nam-kook. He is accused of making suspicious cryptocurrency transactions while working on digital asset legislation in May and November 2022.
In the offices, prosecutors hoped to find transaction records and other materials that could be useful to the investigation. The searches appeared against the backdrop of rumors that the deputy under investigation has wallets with digital assets on Upbit and Bithumb. It is estimated that in 2021, Kim Nam Kook had approximately 800,000 Wemix tokens worth $4.5 million.
