{"id":70981,"date":"2024-02-08T12:33:23","date_gmt":"2024-02-08T16:33:23","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=70981"},"modified":"2024-02-08T12:33:25","modified_gmt":"2024-02-08T16:33:25","slug":"wemade-faces-probe-over-crypto-fraud-allegations","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/wemade-faces-probe-over-crypto-fraud-allegations\/","title":{"rendered":"Wemade Faces Probe Over Crypto Fraud Allegations"},"content":{"rendered":"\n

Wemade, a South Korean Web3 game<\/a> developer, is under investigation by local prosecutors for allegedly violating the rules for virtual asset service providers and issuing fraudulent tokens.<\/p>\n\n\n\n

\"Wemade<\/figure>\n\n\n\n

Wemade, a South Korean Web3 game developer, is currently facing a probe by the Seoul Southern District Prosecutor\u2019s Office\u2019s first financial investigation department. <\/p>\n\n\n\n

According to a local media report,\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> Wemade is accused of making unfair profits by circumventing the rules that require virtual asset service providers to register and report to the authorities.<\/p>\n\n\n\n

The prosecutors are also investigating Wemade\u2019s associated decentralized exchange\u00a0(DEX) PNIX\u00a0and its Play Wallet digital asset storage, allegedly concealing users\u2019 private keys. Wemade later issued its own tokens, WEMIX,<\/use><\/svg><\/span><\/a> and launched its main blockchain network.<\/p>\n\n\n\n

The game developer Wemade has refuted accusations of fraud related to coin over-issuance, stating it has complied with the rules for virtual asset service providers. <\/p>\n\n\n\n

The company maintains that its services, PNIX DEX and Play Wallet, are not subject to registration and reporting obligations because they do not manage user assets through private keys.<\/p>\n\n\n\n

Wemade claims its wallet services are decentralized, without involvement in transferring, exchanging, or storing virtual assets. The company describes PNIX DEX as merely a platform for users to post-trade proposals and facilitate deals, with assets stored in smart contracts and exchanged directly between users, ensuring the company does not control the assets.<\/p>\n\n\n\n

\n

\uc704\ubbf9\uc2a4 \uc0dd\ud0dc\uacc4 \uc77c\ubd80 \uc11c\ube44\uc2a4\uc758 \uac00\uc0c1\uc790\uc0b0\uc0ac\uc5c5\uc790 \uc2e0\uace0 \uc5ec\ubd80\uc640 \uad00\ub828\ud55c \uc785\uc7a5
\uc704\ubbf9\uc2a4\uac00 \uc81c\uacf5\ud558\ub294 \ubaa8\ub4e0 \uc11c\ube44\uc2a4\ub294 \ub300\ud55c\ubbfc\uad6d \ud2b9\uc815\uae08\uc735\uc815\ubcf4\ubc95\uc744 \ube44\ub86f\ud558\uc5ec, \uc804\uc138\uacc4 \uac01\uad6d\uc758 \uac00\uc0c1\uc790\uc0b0\uc0ac\uc5c5\uc790(VASP) \ud574\ub2f9 \uc5ec\ubd80\uc640 \uadf8\uc5d0 \ub300\ud55c \uc2e0\uace0 \uc5ec\ubd80\ub97c \ud3ec\ud568\ud558\uc5ec, \uc704\ubbf9\uc2a4 \uad00\ub828 \uc0ac\uc5c5\uacfc \uc11c\ube44\uc2a4\uac00 \uaddc\uc81c\ub97c \uc900\uc218\ud558\uae30 \uc704\ud55c \ub192\uc740 \ucef4\ud50c\ub77c\uc774\uc5b8\uc2a4\u2026 pic.twitter.com\/afVyeZ4hnE<\/use><\/svg><\/span><\/a><\/p>— WEMIX (@WemixNetwork) February 8, 2024<\/use><\/svg><\/span><\/a><\/blockquote>

The probe against Wemade is one of the latest examples of the regulatory challenges and risks facing the crypto and blockchain industry in South Korea. The country has recently tightened its regulations on crypto service platforms, requiring them to register with the Financial Services Commission (FSC) and comply with anti-money laundering (AML) and know-your-customer (KYC) rules.<\/p>\n\n\n\n

However, many crypto service platforms have failed to meet the FSC\u2019s requirements, leading to the closure or suspension of several platforms. The FSC has also warned crypto users to exercise caution and due diligence when choosing a crypto service platform and to avoid investing more than they can afford to lose.<\/p>\n\n\n\n

The probe against Wemade could have a significant impact on the company\u2019s reputation and business, as well as on the crypto and blockchain community in South Korea. The outcome of the probe could also influence the future of the regulation and innovation of the digital finance sector in the country.<\/p>\n","protected":false},"excerpt":{"rendered":"

Wemade, a South Korean Web3 game developer, is under investigation by local prosecutors for allegedly violating the rules for virtual asset service providers and issuing fraudulent tokens. Wemade, a South Korean Web3 game developer, is currently facing a probe by the Seoul Southern District Prosecutor\u2019s Office\u2019s first financial investigation department. According to a local media […]<\/p>\n","protected":false},"author":44,"featured_media":70983,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11476],"tags":[1135,1712,17243,18342,12608],"class_list":["post-70981","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hacks-and-scams","tag-fraud","tag-south-korea","tag-web3-games","tag-wemade","tag-wemix"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/02\/wemade-korea.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/70981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=70981"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/70981\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/70983"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=70981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=70981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=70981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}