Financial Supervisory Service Chief: "US-Origin Virtual Asset Crisis Also an Accounting Issue... Monitoring WEMIX Dispute"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Regarding the delisting of WEMIX, a cryptocurrency issued by Wemade, Financial Supervisory Service Governor Lee Bok-hyun stated, "(FTX and other) US-origin virtual asset issues were accounting problems similar to the past Enron scandal," adding, "We are monitoring the specifics of what content and disputes occurred."

Governor Lee made these remarks on the 28th after attending an event supporting independent living for self-reliant youth held at the Seoul Children's Foundation, speaking with reporters.

He continued, "Until now, financial authorities have been striving to avoid errors in how disclosures and notes are handled within the IFRS framework, but this incident has occurred."

He also said, "From a capital market perspective, there is a problem where the disclosed number of issued shares and the circulating shares do not match at all," adding, "We regard this matter as a significant issue."

Earlier, on the 24th, the Digital Asset Exchange Joint Council (DAXA) decided to delist WEMIX. The critical factor was a significant violation of circulation volume, along with insufficient or incorrect information provided to investors, errors in materials submitted during the explanation period, and damage to credibility, all contributing to the delisting decision.

In response, Wemade stated, "We proved the WEMIX holdings and circulation volume in real time, so DAXA's position that the explanation was insufficient is not true." They are also preparing injunction applications and filing complaints with the Fair Trade Commission.