'Withdrawal Error' Wemade's 'Kleba' Recovers 99% of Deposits

[Asia Economy Reporter Kang Nahum] During the update process of Wemade's decentralized finance (DeFi) service 'Klevar,' an error occurred causing a large amount of cryptocurrency to be withdrawn. However, on the 29th, the total value locked (TVL) was reported to have recovered to 99% of the level just before the error.

According to the Klevar protocol, as of 4:30 PM on the same day, Klevar's TVL recorded $495.56 million (approximately 600 billion KRW), nearly recovering to $500 million.

Earlier, on the 27th, Klevar conducted an update test to prepare the Farming function, during which an error caused excessive interest to be paid on some deposited assets. Approximately 52 million KUSDT (about 62.6 billion KRW) of the deposited cryptocurrency was withdrawn. Klevar's TVL had surpassed $500 million on the 26th but dropped to the low $400 million range by the 28th, just two days later.

In response, the Klevar team immediately took investigative and countermeasures to block further damage, including withdrawal restrictions after discovering the error, and to recover all overpaid interest. Including transaction costs incurred during the recovery process, a 100% restoration is expected. Full compensation will also be provided to affected participants.

Additionally, Wemade has decided to temporarily suspend the liquidity of WEMIX coins. Liquidity will not resume until the market stabilizes further, and when liquidity is resumed, transparent and clear information will be disclosed to the market and investors.

Jang Hyun-guk, CEO of Wemade, stated, “We apologize for causing concern due to this unexpected incident. The incident has been resolved, and we will establish a structure to fundamentally prevent recurrence. As this is done under the name of Wemade, we will continue to provide responsible services going forward.”