TechFlow news, according to Digital Asset, South Korean prosecutors have launched a full-scale forced investigation into WeMade, a publicly listed gaming company in the country, and its WEMIX token market makers. The probe follows a complaint filed by WEMIX investors with prosecutors on May 12, accusing the company of fraud, embezzlement, and other charges.
This marks the first time prosecutors have conducted a forced investigation into WeMade, although the company has sparked multiple controversies since 2021. From November 2020 to January 2022, WeMade liquidated 225.5 billion won worth of WEMIX tokens without notifying users and used the proceeds to acquire a company.
In addition, at the end of 2022, WeMade faced allegations of falsely disclosing WEMIX issuance volumes and became embroiled in legal disputes with domestic cryptocurrency exchanges, ultimately resulting in WEMIX being delisted from several major South Korean crypto platforms. It is understood that prosecutors have not only searched and seized materials from WeMade but also conducted search-and-seizure operations at the premises of WEMIX market makers.
