The Korean prosecution has simultaneously raided WeMade, the issuer of the cryptocurrency WEMIX, and Hyperism, the asset management company responsible for WEMIX’s market making. This incident comes right after South Korea’s parliament passed the Virtual Asset Protection Act, which aims to crack down on illegal illegal trading practices such as market price manipulation and insider trading.
The raid was conducted at the headquarters of Hyperism, located in Gwanak-gu, Seoul. An official from Hyperism confirmed that the prosecution was conducting a search in relation to WEMIX. The office was tightly sealed, with both the front glass door and the external iron door firmly closed.
The Financial Investigation Department 1 of the Seoul Southern District Prosecutor’s Office initiated the search at WeMade’s headquarters in Bundang-gu, Seongnam-si, Gyeonggi-do. The investigation also extended to the market makers of WEMIX.
Previously, WEMIX investors had filed a complaint against Hyun-guk Jang, the representative of WeMade, accusing him of fraud and fraudulent unfair trading under the Capital Market Act on May 12.
In 2021, WeMade had invested in Hyperism through its blockchain-specialized subsidiary, WeMade Tree. It was reported that WeMade had invested KRW 5.2 billion from the funds raised from the sale of WEMIX, and subsequently paid 18 million WEMIX to the Hyperism Eco Fund.