Wemade and Gidac Escalate with Counterlawsuits... WEMIX Withdrawal Controversy Continues

Gidac "Chairman Park Gwan-ho Accused of Investor Deception, Market Manipulation, and Money Laundering"
Wemade "Victim Is Chairman Park Who Failed to Recover 8 Million WEMIX Tokens"
Both Sides Announce Legal Action

The conflict between Wemade and the virtual asset exchange GDAC is intensifying. When Park Kwan-ho, chairman of Wemade, hinted at legal action after failing to recover about 8 million WEMIX tokens he purchased on GDAC, GDAC also announced a countermeasure, accusing Chairman Park of manipulating WEMIX prices and money laundering.

On the 20th, GDAC stated in a "Fact Clarification and Correction Request" document, "Serious allegations related to investor deception and fraud, price manipulation, money laundering, and unfair trading have been found against Chairman Park, and we are notifying him and proceeding with legal action," adding, "We have waited a long time for Chairman Park's explanation, but since there has been no response, we plan to file a criminal complaint."

GDAC also addressed recent reports that "Chairman Park requested the return of all 8 million tokens, but GDAC refused and limited daily withdrawals to 16,000 tokens," explaining, "Currently, GDAC's withdrawal policy and withdrawal services are being normally supported equally for all members."

However, GDAC did not provide specific evidence regarding the allegations of investor deception, fraud, price manipulation, money laundering, or unfair trading.

In response to GDAC's announcement of legal action, Wemade stated, "The victim is Chairman Park, who has not been able to recover the WEMIX tokens entrusted to GDAC due to a hacking incident," and criticized it as "a frame to turn the victim into the perpetrator as public opinion turns unfavorable."

The bad relationship between the two parties began in April last year, when GDAC suffered a hacking incident resulting in the theft of about 20 billion KRW (based on the market price at the time) of customer assets. Most of the stolen assets were WEMIX tokens (10 million), a significant portion of which were entrusted by Chairman Park. Although GDAC later stated that it covered all stolen assets with company funds, suspicions arose as they did not return Chairman Park's WEMIX tokens, questioning whether the full amount was truly compensated.

Subsequently, on March 27, GDAC announced the termination of WEMIX trading support. The reasons for delisting were lack of marketability and legal issues (suspicions of unregistered virtual asset business operator). Typically, lack of marketability means low trading volume. Industry insiders have speculated that the delisting might be related to Chairman Park's withdrawal requests.

At the shareholders' meeting in March, Chairman Park said, "I entrusted 11 million WEMIX tokens to GDAC, but 8 million tokens remain unwithdrawn," adding, "I requested the return of all tokens, but GDAC refused and limited daily withdrawals to 16,000 tokens. I am the biggest victim of the hacking." The 8 million WEMIX tokens he has not recovered are worth approximately 11.6 billion KRW at the current price of 1,450 KRW per token.

GDAC has announced that it will terminate its virtual asset trading services. The termination date is July 16, and virtual asset trading will be unavailable starting from the 24th of this month.