Wemix circulation manipulation allegations, Jang Hyun-guk, former CEO of Wemade, acquitted in first trial

- Chang Hyun-guk, Former CEO of Wemade, Acquitted on Charges of Manipulating WEMIX Token Circulation - Highlighting the Differences Between Regulation and Legal Standards in Cryptocurrency and Traditional Capital Markets [Unblock Media] Former CEO of Wemade, Chang Hyun-guk, along with the company Wemade, has been acquitted in the first trial of charges alleging intentional concealment of WEMIX token circulation to gain unfair profit. This case is being evaluated as a pivotal example that reexamines the regulatory and legal disparity between cryptocurrencies and traditional capital markets. According to News Pim on the 14th, the Seoul Central District Court explained, "The capital market pertains to the market where Wemade's shares are traded, whereas the cryptocurrency WEMIX operates in a separate domain," further stating that "The defendant's actions and statements cannot be deemed as causing harm to investors in Wemade's shares." Consequently, the court ruled that allegations of false disclosures or market manipulation under the Capital Markets Act do not apply to Wemade or WEMIX. One of the most critical points of this ruling is the legal distinction between cryptocurrency markets and traditional capital markets. In the latter, regulatory frameworks enforce systematic obligations for disclosure and investor protection under financial oversight, whereas cryptocurrency markets operate on a decentralized structure heavily reliant on technology. The court's rejection of criminal responsibility surrounding WEMIX token circulation stems from the absence of specific regulatory systems governing cryptocurrency activities. Token circulation transparency is a cornerstone of trust in cryptocurrency markets. Notably, during the Terra and Luna token debacle, the mishandling of supply information led to a market-wide collapse, underscoring the significance of transparency. Experts warn that the breakdown of trust in circulation data can result in market crashes, extreme price volatility, and mass investor withdrawal—a threat that extends beyond individual projects to the broader cryptocurrency market infrastructure. This verdict underscores the challenges of holding parties accountable within the existing legal framework for actions related to cryptocurrencies. As a result, calls are growing for enhanced transparency measures, such as mandatory disclosure of token circulation data, real-time tracking systems, and stronger oversight functions for exchanges. Without establishing a trustworthy market environment, the likelihood of similar incidents recurring remains high. Ultimately, the acquittal serves not only as evidence of the inability to apply current legal charges to the defendant but also as a stark reminder of the urgency to develop a new regulatory framework ensuring transparency and security in cryptocurrency ecosystems. As the age of digital assets continues to evolve, the need to redefine legal standards in this domain is gaining renewed attention.