"WEMIX Delisting Controversy: Allegations of DAXA's Unwarranted Authority Misuse"

# Wemade Criticizes DAXA for Arbitrary Delisting Decision, Plans Legal Action # "Exchange Profits and Power with No Standards": Calls for Oversight of DAXA # Legal Claim Expected to Be Filed on November 7 Amid Intensifying Dispute Seoul - Wemade Co. has fiercely opposed the Digital Asset eXchange Alliance (DAXA) for its decision to delist the company’s cryptocurrency, WEMIX (WEMIX). Accusing DAXA of "abuse of discretion and misconduct," Wemade plans to file an injunction lawsuit by November 7. The controversy emphasizes the need for transparent decision-making in South Korea's burgeoning cryptocurrency industry. Wemix Foundation CEO Kwon Suk-hwan held an emergency press conference on November 3 in Pangyo, Gyeonggi Province, addressing the delisting decision by four major local fiat-crypto trading platforms—Bithumb, Coinone, Korbit, and GOPAX. Kwon expressed disappointment and pledged to fight back, calling the reasoning behind the delisting both "opaque" and "unacceptable." # "Opaque Deliberations, Arbitrary Decisions" At the conference, Kwon apologized to investors, holders, partners, and gaming users for the substantial inconvenience and losses caused by the delisting, while firmly criticizing DAXA. "DAXA's arbitrary judgment without clear delisting criteria is unacceptable. It represents the exchanges' interests, operating without transparency or oversight," said Kwon. He stressed that exchanges have made "massive profits and wield immense authority" but fail to disclose delisting criteria or their decision-making processes, causing significant harm to investors. # Breach Incident and Public Concerns The delisting saga traces back to a February 28 hacking incident involving the WEMIX blockchain system’s Wemix Play Bridge. Hackers exploited the platform, compromising over 8.65 million WEMIX coins, likely sold across seven global exchanges, including KuCoin, BitMart, and Bybit. Wemade's disclosures about the hack, made days later on March 4, invited criticism over delayed public notification. DAXA scrutinized the company for inadequate explanations, lack of a detailed recovery plan, and weak efforts to address the root causes of the incident. This led DAXA to designate WEMIX as an "issue-flagged asset," citing unresolved security and trust deficiencies. On June 2, DAXA decided to delist WEMIX from four of its member exchanges, excluding Upbit. Asset withdrawal will be permitted until July 2. # DAXA Defends Its Position While Wemix Challenges the Rationale DAXA defended the delisting, arguing that Wemix failed to meet essential standards for maintaining trading support, especially concerning transparency and security compliance. Countering these claims, Kwon presented evidence of preventive actions, including extensive collaboration with security consultancy firms certified by the Korea Internet & Security Agency (KISA). Additionally, Wemade granted DAXA direct, onsite assessment opportunities to inspect WEMIX systems. "DAXA's justification for the delisting, citing unresolved security issues, is incomprehensible given the submissions and opportunities we provided," said Kwon. He explained that the delayed public announcement of the hacking was due to concerns over follow-up attacks and apprehensions about inciting market panic. "We were dealing with added exposure risks and lacked clear controls over the flow of stolen tokens. Premature disclosure could have led to more severe fallout," Kwon stated, defending the rationale for the delayed disclosure. # Investor Confidence and Government Oversight Wemade revealed ongoing efforts to restore investor trust, including an initial buyback of tokens worth KRW 10 billion and plans for an additional 20 million token buyback program. The blockchain-based company employs over 300 dedicated personnel, committed to enhancing its operations and solidifying its position in the global blockchain space. Kwon highlighted Wemade's upcoming projects, including "Legend of YMIR Global," aimed at restoring leadership in the blockchain ecosystem. In a broader context, Kwon called for greater oversight and regulatory intervention from South Korea's Financial Services Commission (FSC), which recently established a Digital Asset Division. He urged for clear standards to ensure DAXA and similar organizations cannot misuse discretionary powers in arbitrarily delisting assets. "This goes beyond WEMIX. These problems must be addressed for the future of Korea's blockchain industry," he said. # "It Ain't Over Till It’s Over" Closing the conference, Kwon invoked a famous quote by legendary Major League Baseball player Yogi Berra, "It ain't over till it's over,” reaffirming Wemade’s commitment to ongoing business operations and defending its company vision. The unfolding legal battle signals a critical moment for South Korea’s cryptocurrency regulations, with implications that could redefine industry standards and practices globally.