Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Wemade investigated for allegedly dodging reporting duties: report

Wemade investigated for allegedly dodging reporting duties: report

The BlockThe Block2024/02/08 08:46
By:The Block

Quick Take South Korean prosecutors are reportedly examining if Wemade withheld giving private keys to users, which would mean that Wemade violated local reporting rules.

Wemade investigated for allegedly dodging reporting duties: report image 0

Wemade, a South Korean Web3 game developer with a market capitalization of 1.6 trillion Korean won ($1.2 billion), is under investigation by local prosecutors, according to South Korean news reports. 

The investigation centers on allegations of unfair profits through potentially evading regulations that require virtual asset service providers to register with authorities, local news outlet Munhwa reported Thursday.

South Korean regulations mandate registration and reporting by crypto service platforms, except for those not sharing control over user assets by providing private keys. Wemade, which started as a game developer but has transitioned to issuing its own token ( WEMIX -1.92% ) and blockchain mainnet, has insisted that the company is not subject to reporting requirements.

Prosecutors are reportedly examining whether Wemade-affiliated decentralized exchange, PNIX, and its digital asset storage system, Play Wallet, withhold private keys from users. This probe aims to determine if PNIX and Play Wallet services violate the mandate by avoiding reporting duties required for platforms that do not grant users private keys, according to Munhwa.

The Financial Intelligence Unit, the local financial sector’s supervisor, also received similar complaints and launched an investigation on Wemade, Munhwa reported.

Wemade’s WEMIX team responded to the allegations in an official announcement Thursday afternoon in Asia, where it said that PNIX DEX and the Play Wallet services are not subject to the compliance requirements.

The statement said that the Play Wallet is a decentralized service where the team does not have control over users' private keys or assets. The team added that PNIX merely provides a decentralized trading platform that processes buy and sell orders where assets waiting for transactions are stored in smart contracts outside the operator’s hands. 

The statement did not explicitly specify whether the two services have been offering users with private keys.

The Block has reached out to Wemade and the prosecutor’s office for further comments.


0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

GHO HodlerYield promotion rules

Bitget Announcement2025/08/07 10:30

New spot margin trading pair — TOWNS/USDT!

Bitget Announcement2025/08/07 09:07