A South Korean court has acquitted Jang Hyun-guk, former CEO of blockchain gaming firm Wemade, of charges related to manipulating the supply of its native WEMIX token. The Seoul Southern District Court ruled that Jang had no intent to distort the crypto market or deceive investors, marking a legal victory for the ex-executive, now affiliated with blockchain firm Nexus.

Jang was initially indicted in August 2024 for allegedly misrepresenting the circulating supply of WEMIX tokens and continuing token sales despite public assurances to the contrary. Prosecutors accused him of orchestrating the unauthorized sale of over $200 million worth of WEMIX between February and October 2022, while failing to meet disclosure obligations under South Korea’s Capital Markets Act.

Despite his acquittal, the controversy has already taken a toll. In December 2023, South Korea’s largest crypto exchanges, under the Digital Asset eXchange Alliance (DAXA), delisted WEMIX following court approval. Since its all-time high of $24.71 in November 2021, the WEMIX token has crashed 97%, currently trading around $0.61.

Adding to the project’s woes, the Wemix Foundation came under fire after a February 2025 hack drained over 8.6 million tokens—worth more than $6 million—from its Play Bridge Vault. Critics accused the foundation of a cover-up due to a delayed disclosure. CEO Kim Seok-hwan denied any concealment, stating the delay was to prevent panic.

Even with Jang’s legal clearance, the foundation’s trust deficit remains. WEMIX continues to suffer from reputational damage and price volatility. Prosecutors may still appeal the court’s decision, keeping the legal battle alive as investors weigh the future of the troubled token.