• Following a $6.2M token hack, Bithumb is keeping a close eye on WEMIX.
• Wemade acknowledged a four-day delay in disclosing the hack, attributing it to security concerns.
• DAXA is expected to reach a decision on whether to delist WEMIX by early May 2025.

WEMIX, the blockchain gaming token, is still navigating some choppy regulatory waters in South Korea. This is largely thanks to a hack that stirred up controversy, and the fact that Wemade, the token’s issuer, was a bit slow to communicate about it.

Adding to the pressure, Bithumb, a major crypto exchange in South Korea, announced they’re extending WEMIX’s status as a “closely monitored asset.” This decision follows recommendations from the Digital Asset eXchange Alliance (DAXA).

This “closely monitored” label brings us to a crucial point: a final call on whether to delist WEMIX is coming the week of May 2nd. This decision really matters, as it could significantly impact South Korea’s GameFi scene.

So, Why the Delisting Risk for WEMIX?

The increased scrutiny really kicked in after a security breach on February 28th at the PlayBridge Vault. Hackers managed to steal over 8.65 million WEMIX tokens, which were valued at roughly $6.2 million at the time.

Here’s a key point of contention: the WEMIX Foundation waited a full four days before publicly disclosing the hack on March 4th. This delay sparked a strong backlash from the South Korean crypto community and fueled questions about Wemade’s transparency and how they manage risk. Wemade, of course, is the company behind WEMIX.

Related: Don’t Miss: South Korean Court Tells Defunct GDAC to Return $7.3M in WEMIX to Wemade CEO

To address the criticism around the late disclosure, Kim Seok-hwan, CEO of WEMIX PTE. LTD. – that’s the Singapore-based subsidiary of Wemade – explained their reasoning at a press conference on March 17th. He argued the delay wasn’t about hiding anything, but a necessary step to prevent further attacks and keep the market from panicking.

Market and Authority Reaction: What Happened?

Despite the explanation, investor confidence seems to have taken a hit. The $WEMIX token’s price plunged 39% after the hack, dropping from $0.70 to $0.42. While it’s now trading around $0.66, the initial impact was clear.

To make things even more complicated, South Korean cyber police have launched a formal investigation into the hack. This could definitely weigh on DAXA’s upcoming decision about delisting.

Related: Worth Reading: South Korea Tightens Crypto Rules, Blocks Unregistered Apps on Apple Platform

If major exchanges like Bithumb actually delist WEMIX, it could throw a wrench into Wemade’s broader blockchain gaming ambitions. They rely on the token quite a bit for in-game economies and marketplace transactions.