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According to ChainCatcher, citing a report from Cointelegraph, the Seoul Southern District Court ruled on Tuesday that former Wemade CEO Jang Hyun-guk was not guilty of manipulating the circulation of WEMIX tokens. Prosecutors had accused him of concealing the continued sale of over $200 million worth of tokens in 2022, but the court found insufficient evidence of intentional market manipulation. Following the news, WEMIX saw a short-term surge, but it remains down about 97% from its 2021 peak.

According to a report by Jinse Finance, a South Korean court has acquitted Jang Hyun-guk, former CEO of blockchain gaming company Wemade, of charges related to manipulating the circulation of the WEMIX cryptocurrency. Prosecutors alleged that Jang Hyun-guk had falsely announced a suspension of WEMIX token liquidation in order to stabilize its price and boost investor confidence in the asset. However, the court found no clear evidence indicating an intent to manipulate the market. Prosecutors also claimed that under Jang Hyun-guk’s leadership, Wemade unfairly sold over $200 million worth of WEMIX tokens on the market between February and October 2022, without complying with South Korea’s Capital Markets Act disclosure requirements. The company was also suspected of using these tokens to invest in external funds and obtaining stablecoin loans with Wemix as collateral.