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Wemade’s WEMIX Token To Be Delisted After Court Rejects Injunction

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WEMIX, the native token of South Korean video game developer, Wemade was delisted by the nation’s four crypto exchanges on the grounds of inaccurate reporting of circulation data.

Bithumb, Upbeat, Coinone, Korbit, and Gopax — which are part of the Digital Asset Exchange Alliance [DAXA] announced on Nov. 24 that they would end the support for WEMIX on Dec. 8.

A few months prior, the group issued an investment warning that there was considerably more WEMIX in circulation than disclosed, and Wemade had agreed to work with DAXA to alleviate these concerns.

However, the situation worsened when Wemade CEO Henry Chang, speaking at an online press conference on November 25, criticized Upbit for misusing its authority by delisting WEMIX and threatened to report the exchanges to the Fair Trade Commission.

The online game publisher refused to back down and ultimately filed an injunction request in a bid to prevent other exchanges from delisting its token.

As reported by Money Today News, South Korea’s Seoul Central District Court has now dismissed the firm’s suggestion after the hearing on Dec. 2.

This implies that the four exchanges will remove the token from their platform at 3 p.m. on 8th Dec.

WEMIX Token Drop By 50%

As word of the delisting decision spread, WEMIX Communication issued a statement stating it had sincerely followed DAXA’s requests and concerns and fixed a number of problems where they felt the group’s circulating supply had been overestimated, adding:

“The team does not acknowledge or agree with the unreasonable decision made by the Digital Asset eXchange Alliance (DAXA)… It is crucial to note that the Foundation has not circulated a single WEMIX more than what we have officially disclosed thus far.”

The price of WEMIX plummeted following the news, and at the time of writing is down by over 47% with a current price of $0.35.

Meanwhile, Binance has come to the gaming firm’s aid as its legal issues have gotten worse. Wemade’s token will be kept under institutional custody by Binance Custody, the largest cryptocurrency exchange in the world.

It will manage the asset and verify its circulation volume from next week, as per Wemade Co. Ltd. Moreover, 70% of WEMIX’s total supply, which contributes to 92% of the cryptocurrency that is not in circulation, will be overseen by Binance Custody. 

Court Drops Terra Luna Co-Founder Hyun-Seong’s Warrant

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For some time now, Terraform Labs has been making headlines. According to sources, South Korean authorities summoned the company’s co-founder Daniel Shin, also known as Shin Hyun-Seong, earlier this month for an inquiry into claims that he improperly benefitted from the sale of LUNA [now LUNC] tokens.

According to a South Korean news source, the prosecution wanted to arrest Shin. According to sources, the prosecution has charged Shin with making illegal profits while secretly selling $105 million of LUNA at a market high. He was also charged with violating the Electronic Financial Transaction Act by using customer data from Chai, another company he managed, to promote Luna.

However, Shin had previously stated that in 2020 he terminated ties with Do Kwon and Terraform Labs. He later founded the payment technology company Chai Corporation, where he is currently CEO and founder.

Change Of Events For Terra-Luna Co-Founder

It has just come to light that the court on March 3rd dismissed the arrest order for Shin Hyun-Seong, the former CEO of Chai Corporation and the founder of Terraform Labs, the company responsible for creating the virtual currency known as “Terra Luna.”

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Terra Luna Co-Founders: Daniel Shin (left) and Do Kwon (right)

In the stablecoins meltdown, which shook the world virtual currency market in May of this year, Shin is seen as a crucial player. Even trying to find a replacement hire for former CEO Shin has failed, and with Terraform Labs co-founder Kwon Do-Hyung staying abroad and not coming back to Korea, it can be assumed that the probe will be difficult.

After questioning the suspects (warrant review) and arresting them the previous day, chief judge Hong Jin-Pyo of the Seoul Southern District Court dismissed the arrest warrant at roughly 2:20 am on the same day.

Judge Hong said,

“Considering the attitude toward the investigation, the circumstances, process, and contents of the statement, it is difficult to see that there is a risk of destroying evidence or escaping beyond the scope of exercising the right to legitimate defense.”

Warrants for three early backers and four Terra Luna developers, who were also jointly sought, were all denied for the same reason.

Terra’s Co-Founder Reportedly Sold 70% LUNA Before Price Hike

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Earlier this week, it was revealed that South Korean authorities had summoned former Terra executive Shin Hyun-seong, aka Daniel Shin, to an investigation into allegations that he had unfairly profited by selling LUNA [now LUNC] tokens.

Shin was accused of “holding pre-issued LUNA tokens without informing regular investors and then reportedly generating gains of 140 billion Korean won when he sold the tokens at a high point,” as a result. The same was worth approximately $105.52 million.

Terra Co-Founder Denies Illegitimate Profits Of $100M

Shin testified in front of the prosecution on November 17 that he was in possession of a sizable number of LUNA tokens at the time of the accident. Additionally, he denied selling tokens when LUNA was near its highs. A local media report claims,

“Shin is said to have made a statement to the prosecution to the effect that “more than 70% of the disposed Luna was traded before the price soared, and a significant amount was retained even at the time of the collapse.”

In a recent decision, the prosecution determined that the LUNA cryptocurrency qualifies as a financial investment security. As a result, it is “actively investigating” charging Shin with crimes under the Capital Markets Act, namely engaging in fraudulent illegal activities.

The former Terra executive is also charged with harming the business by promoting LUNA and the native stablecoin of the Terra ecosystem while using customer data and funds held by Chai Corporation, the organization where he currently holds the positions of CEO and Founder.

Nevertheless, a Chai representative recently informed Watcher Guru through email that the organisation has been running independently from Terra since Q1 2020. Shin has “cooperated” with the authorities in the continuing Terra probe and will “continue to do so,” according to the issued statement.

Shin has repeatedly said that he severed connections with Do Kwon and Terraform Labs in 2020. He then went on to found Chai Corporation, a provider of payment technology, where he is presently CEO and founder.

Terra’s Do Kwon Accused of Terra Price Manipulation

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According to a local report from South Korea, the country’s prosecutors have evidence that suggests Do Kwon, a co-founder of Terraform Labs, once gave employee instructions to alter the price of Terra Luna Classic (LUNC).

An official from the South Korean Prosecutors Office is quoted in a report by Korean Broadcasting System (KBS) on Nov. 3 as saying that they have procured a “conversation history” in which “CEO Kwon specifically ordered price manipulation.”

A “messenger conversation” between Kwon and a former Terraform Labs employee was reportedly used as the basis for the reported evidence. The prosecution withheld additional information, stating that more details can’t be revealed.

“It was a conversation history where CEO Kwon specifically ordered price manipulation.”

The exact details of Terra price manipulation are unclear

The price action of Terra’s LUNC (previously LUNA) during the previous bull market was unquestionably one of the most impressive across all cryptocurrencies, even though the specifics of the price manipulation are still unknown.

From $4.18 in late May 2021 to its all-time high of $119.18 on April 5, its price increased by more than 2,800%. Before its catastrophic fall on April 30, 2022, according to data from CoinGecko.

However, the report notes that Kwon’s agent has persisted in refuting these accusations.

Additionally, Kwon and his representatives have in the past refuted claims that they broke the capital markets regulations in South Korea.

In September, Terraform Labs claimed that the prosecution’s case against its co-founder had become “highly politicized” and that, in response to pressure from the public, prosecutors had broadened the definition of security.

Despite Kwon’s co-founder of the Terra ecosystem having previously claimed he is “not on the run,” it is still unclear where he is.

According to earlier reports, Kwon initially relocated from South Korea to Singapore before moving to Dubai, United Arab Emirates (UAE). Now, according to the KBS report, Kwon is allegedly living in Europe without a passport as of November 3.

However, in one of his most recent tweets, he stated that he is going to throw a meetup to get over all the nonsense about his hiding.

Kwon also added that cops from the world over are welcome to attend.

Terra Founder In A Tiff: $57M Lawsuit In Singapore

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Do Kwon, the founder of Terra, has been wanted to be arrested by regulators all around the world. A number of lawsuits have been brought against the executive, reportedly holding him responsible for the destruction of the Terra ecosystem’s two cryptos, UST and LUNA.

Along with the Luna Foundation Guard (LFG) and Terra founding member Nicholas Platias, Do Kwon, the co-founder of Terraform Labs who may be subject to legal action in South Korea and the United States, is the subject of a lawsuit in Singapore.

On September 23, 359 people filed a case in Singapore’s high court alleging that Kwon, Platias, the LFG, and Terra made false statements, claiming that the token’s stablecoin, UST — renamed TerraUSD Classic (USTC) — was not “stable by design” and could not keep its peg to the US dollar.

Based on the value of the UST tokens they bought, held, or sold during the market slump in May, the claimants are asking for compensation for a total of about $57 million in “loss and injury.” Additionally, they want for an order to pay “aggravated damages.”

The four persons connected to the token “knew or ought to have known that the Claimants sought to buy and hold digital stablecoins that were not susceptible to the volatility of the wider market and produce a respectable passive return,” the people bringing the case claim. Based in part on his involvement in the demise of Basis Cash, the court document specifically claims that Kwon was aware of “the structural fragility of algorithmic stablecoins.”

The lawsuit said,

“The Defendants made the said representations fraudulently either well knowing that they were false and untrue, or recklessly not caring whether they were true or false.”

Terra Founder Still Active On Social Media?

Since the Terra blockchain ecosystem collapsed in May, Kwon has been the victim of many legal actions and threats. In September, South Korean officials issued a rescinded arrest order for the Terra co-founder. Interpol then added Kwon to its Red Notice list, urging that law enforcement identify and perhaps jail him.

Despite not disclosing his location, Kwon has been active on social media throughout the scandal and declared in September that he was “making zero attempt to conceal.” In reaction to the lawsuit, one Redditor complained that Kwon was “doing a bad job at acting innocent for a guy who is innocent.” Others made outrageously speculative claims that he had plastic surgery to make himself look different.

Kwon’s address was listed in Singapore in the lawsuit filed on September 23, however some reports claim that he may have left the country. The co-founder of Terra was given an order by South Korea’s foreign ministry (Kwon is a Korean national) on October 6 to turn up his passport or risk having it revoked.

Conflicts Over Terra Token Treatment Due To Lack Of Regulations

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The collapse of Terra happened months ago. However, the aftereffect is still present in the crypto-hallways. verse’s The South Korean authorities are currently making every attempt to apprehend Do Kwon, the project’s originator.

Authorities in South Korea are having difficulty compiling a compelling case against the token’s founder Do Kwon. According to a Bloomberg story, disagreements about how to manage Terra tokens are emerging as a result of the lack of laws.

The prosecutor’s office recently asked that a Terraform Labs ecosystem participant be jailed. The court, however, turned down their motion. Despite what the prosecutors asserted, the judge concluded that it is still unclear if the defendant truly violated the South Korean Capital Markets Act.

The prosecution seems to mention the difficulties of the case while implying that it is working hard to prove the case. The authorities insist that further research is ongoing despite the lack of specific restrictions.

Terra Chief’s Whereabouts Still Unknown?

Do Kwon, the chief of Terra, is charged with breaking the Capital Markets Act, while he insists that he did nothing illegal. Kwon is the subject of an Interpol and local South Korean authorities’ arrest warrant. Kwon’s whereabouts are still a mystery.

Kwon, who continues to maintain his innocence, has received a red alert from Interpol. Furthermore, Kwon asserted that the red notice is not an arrest warrant in a recent interview with Laura Shin. When asked where he lived, Kwon also declined to give his address. Rumors suggest that he might be in Dubai, though.

Additional charges against Kwon have not yet been made public by the prosecution. The Terra disaster resulted in losses for a total of 280,000 persons, who claimed compensation. In a lawsuit brought by the lawyer for the victims, Kwon was charged with fraud and illegal fundraising.

On the other hand, today’s crypto markets experienced a small reprieve, and the Terra tokens also experienced a rise. At the time of writing, Luna Classic (LUNC) was priced at $0.00024929 with a daily hike of 8.0%. However, LUNA was priced at $2.47 with a rise of 4.2% over the last 24 hours.

These 2 Crypto Exchanges Follow Binance Into Busan

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South Korea’s propensity towards cryptocurrencies and crypto exchanges has been making news. But this wasn’t just about cryptocurrency. The nation was seen adopting the underpinning technology of cryptocurrencies. One of South Korea’s largest cities, Busan, has been working to become the next major blockchain hub. Leading crypto exchanges Gate.io and Crypto.com have decided to support Busan’s attempts to develop its blockchain ecosystem.

Reportedly, Busan secured commercial deals with Gate.io and Crypto.com, according to recent sources. Both exchanges were required to open shops in the South Korean city as per the terms of this agreement.

Additionally, each of these platforms would offer assistance in creating Busan’s municipally supported crypto exchange, which is anticipated to be the first of its kind.

It should be emphasized that each of these exchanges had a designated role. For example, it was expected of Crypto.com to support the expansion of regional blockchain firms. On the other hand, Gate.io is anticipated to annually train more than a thousand local blockchain professionals.

Additionally, each of these exchanges would be eligible to participate in Busan Blockchain Week [BWB], which is slated to run from October 27 to October 29.

Busan: The New Crypto Exchange Hub

It appears like Busan is strongly leaning toward becoming a significant blockchain hub. The city has recently attracted well-known cryptocurrency exchanges. Binance, owned by Changpeng Zhao, entered first, followed by FTX and Huobi, in that order.

The Busan Digital Asset Exchange is being built by all of the aforementioned exchanges, as well as Crypto.com and Gate.io. Park Hyung-jun, Busan’s Mayor stated,

“With this agreement, Busan is one step closer to becoming a global digital finance hub city.”

It should be mentioned that in August of this year, Crypto.com branched out into South Korea. The exchange was successful in acquiring the well-known virtual asset service provider license and the Electronic Financial Transaction Act registration from PnLink Co. and OK-BIT Co.

In a statement, Crypto.com announced that it had successfully acquired both the virtual asset service provider OK-BIT Co., Ltd. and payment service provider PnLink Co., Ltd. By doing this, the crypto platform expanded its market share in South Korea and concurrently obtained registrations as a virtual-asset service provider and under the country’s Electronic Financial Transaction Act.

Here’s Why These Terra Case Witnesses Are About To Face Prison-Time

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Kim Seo-Joon, a significant witness called to testify in the Terra parliamentary inquiry, did not appear, citing “extreme stress,” according to the local South Korean news outlet Korea Economic Daily. Seo-Joon is the CEO of the venture capital firm Hashed and a pioneering investor in Terra (LUNC, formerly LUNA). Seo-Joon stated “extreme stress” as a justification for missing the investigation.

According to the news report, Seo-Joon is one of the six individuals chosen to take part in the Terra collapse investigation by the South Korean parliament. The South Korean government is attempting to comprehend what transpired to cause the LUNA and UST currencies to lose $40 billion.

To explain his absence, Seo-Joon wrote a letter to the national assembly. He claimed that he had a significant mental collapse after the sudden demise of LUNC (formerly LUNA) and the de-pegging of its related algorithmic stablecoin TerraClassicUSD (USTC). He declared,

“I have been suffering from anxiety disorder and panic disorder due to extreme mental stress.”

Seo-Joon also sent a professional evaluation and a medical certificate confirming that he had been hospitalized since July 29 and was undergoing therapy from a psychiatrist along with his letter. Seo-Joon is “in desperate need of emotional stability at this moment,” in the professional’s opinion, and it was claimed that both medicine and counseling treatment made his anxiousness worse.

Seo-Joon claimed that Hashed had lost $3.6 billion from its peak value in late April in an interview with Bloomberg in August. The company held 30 million LUNC (at the time, LUNA) tokens.

Fate Of The Other Witness In Terra Case

Seo-Joon is not the first witness to cancel on the investigation. On October 6, the parliamentary session was also missed by Lee Jung-hoon, the chairman of the South Korean exchange Bithumb. According to Jung-hoon, his panic issue prevented him from attending the investigation. And if that weren’t enough, Jung-hoon is currently facing a maximum sentence of 8 years in jail for a $70 million scam.

Other witnesses who have provided testimony throughout the Terra investigation include Kang Jong-hyun, a significant Bithumb shareholder, CEO of Dunamu, the organisation that runs UpBit, South Korea’s largest cryptocurrency exchange, Lee Seok-woo, Chai Holdco Director Shin Hyun-sung, and Terraform Labs Co-Founder Daniel Shin.

Do Kwon, the chief of Terra, is not on the assembly’s list of people to question. However, international law enforcement agencies keep looking for the now-famous creator.

Terra’s Do Kwon Has Reportedly Left for Dubai

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Terra’s Do Kwon seems to be in a wave of trouble. Forkast verified with South Korean prosecutors that Kwon Do-Hyung, the co-founder and CEO of Terraform Labs Pte Ltd., also known as Do Kwon, departed Singapore last month and arrived in Dubai, United Arab Emirates.

Given that there are no records of Kwon entering the UAE through the airport, an investigation team is assessing the probability that Kwon had a layover in Dubai. Local law enforcement agencies have asked neighboring nations to assist in locating Kwon.

Terra Do Kwon’s whereabouts were a secret

Since the Terra-LUNA accident in May, Kwon’s precise location has remained a mystery. Many people theorized that he was in Singapore because that city-state was Kwon’s last known location.

“It’s not in the interest of being on the run. It’s just that every time the location where I live becomes known, it becomes almost impossible for me to live there.” 

Kwon said during a recent interview 

Following the collapse of the Terra stablecoin and cryptocurrency, which destroyed more than US$60 billion in market value, South Korea is looking into Kwon and Terraform Labs colleagues on a number of counts, including fraud and violating the Capital Markets Act.

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Terra’s Do Kwon Has Reportedly Left for Dubai 3

The investigation’s lead office, the Seoul Southern District Prosecutors’ Office, has filed an arrest order, is working to invalidate Kwon’s passport, and has asked Interpol to put a “red notice” on him.

A red notice requests that international law enforcement find and temporarily detain a person.

Author and cryptocurrency journalist Laura Shin discussed the entire Do Kwon affair on Twitter. Shin voiced her worry and displeasure with the retail investors who were looking for Do Kwon’s secret location.

She also agreed with Kwon’s choice to keep his location a secret. Shin also discussed the claims that Kwon was engaging in fraud.

A Terra whistleblower named Fatman, who is most known for sharing his unbiased feedback on many projects, has something to say. He shared his Twitter thread with Shin, highlighting the significant turning points in Terra’s conspiracy journey.

Do Kown asserted yesterday that Luna Foundation Gaurd (LFG) had contracted with an on-chain analysis business to release a report. Do Kwon said the impending study will shed light on all LFG trade to demonstrate there had been no money misappropriation or theft.

Do Kwon Apologizes To Terra Investors In A Rare Interview

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Do Kwon, the founder of Terra, made a long-awaited appearance in an exclusive interview on October 18 with renowned author and crypto journalist Laura Shin.

Since the Terra Blowout in May this year, Shin, host of the Unchained podcasts, has posed some challenging questions to the evasive founder.

The stablecoin UST and crypto asset LUNA of the Terra Ecosystem collapsed in a matter of days, wiping out the savings of countless people on May 12.

Do Kwon was first questioned about the Red Notice that Interpol had issued calling for his arrest. In response, Kwon said he was waiting for confirmation and refuted having obtained a copy of the arrest warrant.

He expressed his dissatisfaction with the Financial Services Commission of South Korea, for “creating new regulations through criminal enforcement proceedings.”

Calling the charges “illegitimate and politically motivated,” Do Kwon said he is complying with all the document requests made by the South Korean prosecutors.

He then mentioned how he had to deal with one of the worst effects of the collapse: investors losing billions of dollars across the globe. On one occasion, Shin asked Kwon how he felt about the suicide of an investor who lost his life savings, Kwon looked upset and expressed remorse.

I own up to the responsibility fully. It’s not easy — the hardest thing about the current situation is having to contend with so much astronomical loss. It’s quite hard to put into words, but the scale of the financial and emotional and economic damage that happened here is not easy to live.

The terra founder brushed aside reports of cashing out just before the event, calling them “too much misinformation”.

When Shin confronted him with on-chain evidence of 65 million worth of BTC being deposited on KuCoin and OKEx, Kwon retorted that transferring Bitcoin does not always imply selling on spot exchanges and that his auditing firm would soon come out with a report on the same.

Do Kwon Comes Clean On His “Cocky Attitude”

Do Kwon was also accused of having a “cocky attitude” which became notorious during his time on social media. He said he got “carried away with crypto Twitter” and “looking back now it seemed cringe”. But refuse to delete his controversial tweets or posts.

He further appealed to developers to learn from their errors while continuing to work on developing decentralized money that is “more robust, more transparent, and resistant to failure” in addition to being censorship-resistant.