Seoul High Court Dismisses Wemade's Appeal Against WEMIX Delisting Injunction Rejection

Wemade, a South Korean game company, filed for an injunction to suspend the effectiveness of the decision by virtual asset exchanges to halt trading support (delisting) for its cryptocurrency WEMIX, but the request was dismissed. The company appealed the decision, but the appeal was also rejected.

Yonhap News Agency

The Seoul High Court's Civil Division 25-1 (Presiding Judges Lee Gyunyong, Hwang Byungha, and Jung Jonggwan) on September 9 dismissed Wemade's appeal for an injunction to suspend the effectiveness of the trading support termination decision. Previously, on May 30, the Seoul Central District Court's Civil Division 50 (Chief Judge Kim Sanghoon) had also dismissed Wemade's injunction request against four exchanges-Bithumb, Coinone, Korbit, and GOPAX-belonging to the Digital Asset eXchange Alliance (DAXA).

WEMIX is a cryptocurrency issued by Wemade through its subsidiary, targeting the blockchain gaming ecosystem. On May 2, DAXA designated WEMIX as an item of caution and decided to delist it. The reason was that on February 28, approximately 9 billion won worth of WEMIX coins were stolen in a cryptocurrency wallet hacking incident, and this fact was only disclosed about four days later.

In response, Wemade argued that DAXA had made the delisting decision unilaterally without properly disclosing the discussion process or grounds, and filed for an injunction to suspend the decision's effectiveness, but the request was denied. At the time, the court ruled that Wemade and WEMIX had not faithfully disclosed important matters related to the coin, and that the initial circumstances of the system breach of the WEMIX coin had not been properly confirmed, siding with the exchanges. As a result, WEMIX's delisting was finalized, and trading on domestic won-based exchanges has been suspended since June.

Previously, in December 2022, WEMIX was also delisted from domestic exchanges by DAXA due to issues with the disclosure of circulation volume. However, starting with its relisting on Coinone in February of the following year, it was subsequently relisted and traded on GOPAX, Korbit, and Bithumb.