Seoul Court Rules in Favor of Wemade CEO in High-Stakes WEMIX Token Dispute

The Seoul Central District Court has ruled in favor of Wemade CEO Park Kwan-ho in a high-stakes dispute over WEMIX tokens.

A heated legal battle over WEMIX tokens has reached a critical juncture in a Seoul court, highlighting pressing concerns about virtual asset exchanges, regulatory adherence, and investor safeguards.

The essence of the dispute centers around Wemade CEO Park Kwan-ho, who is locked in a legal battle to retrieve his WEMIX tokens from the now-defunct virtual asset exchange GDAC. As per the latest court order, GDAC has been instructed to return 7.8 million WEMIX tokens, valued at approximately $7.31 million, to Park within 30 days. Failure to comply will result in a daily fine of 3 million won after the stipulated deadline.

Crucially, the court has dismissed GDAC's allegations against Park, which included accusations of market manipulation and money laundering. Instead, the focus has shifted to GDAC's ability to maintain a 100% reserve ratio, which seems to contradict the exchange's previous statements.

The court has also raised concerns regarding a hacker attack that GDAC experienced in April 2022, which led to losses of about 20 billion won ($14.48 million). This incident may have impacted their capacity to fully recover and maintain adequate reserves.

notably, GDAC ceased operations on July 16, just prior to the implementation of the ‘Virtual Asset User Protection Act’. This closure left Park unable to withdraw his remaining WEMIX tokens, which are currently valued at about 10.1 billion won.

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