South Korean gaming firm Wemade is facing a new chapter after a Seoul court rejected its bid to stop the delisting of its cryptocurrency, WEMIX, from major domestic exchanges. The Seoul Central District Court dismissed Wemade’s injunction request to block the termination of WEMIX trading support, paving the way for the full delisting of the token from local exchanges by June 2.
The decision comes after the Digital Asset eXchange Alliance (DAXA), a consortium of five major Korean exchanges, announced the delisting of WEMIX following a security breach in February. Over 8.65 million WEMIX, worth around $6.2 million, were illicitly withdrawn from Wemade’s Play Bridge Vault, leading to concerns about transparency and user protection standards.
Despite Wemade’s efforts to address the breach and compensate affected users, DAXA found the explanations and plans insufficient, prompting the delisting decision. The exchanges flagged the project for review and officially announced the delisting plan in May, with trading support scheduled to end by June 2 and withdrawal services available until July 2.
Wemade challenged the delisting in court but was unsuccessful in overturning the decision. In response to the ruling, the WEMIX team issued a public statement expressing regret and committing to improving security and ecosystem stability. The team acknowledged the damage caused by the hack and apologized to users, emphasizing their dedication to strengthening security measures and resuming operations.
While the delisting deals a significant blow to Korean trading, Wemade remains determined to overcome the setback and provide value through its blockchain gaming and DeFi platforms. The company has faced similar challenges in the past, and it plans to release short- and long-term strategies to address the delisting and stabilize the ecosystem.
Despite regulatory restrictions preventing re-listing on Korean exchanges for at least a year, Wemade is focused on rebuilding and regaining user trust. With trading ending soon and withdrawals closing in July, the coming weeks will be crucial for the firm as it navigates the impact of the delisting and charts a path forward in global markets.
Although WEMIX remains available on overseas platforms, the loss of access to local liquidity and investors in South Korea poses a significant challenge. The team’s resilience and commitment to sustaining the ecosystem will be essential as they work to bounce back from the delisting and continue providing value to users worldwide.