South Korean prosecutors are reportedly examining if Wemade withheld giving private keys to users, which would mean that Wemade violated local reporting rules.
Wemade, a South Korean Web3 game developer, has dismissed allegations of coin over-issuance fraud raised by the Seoul Southern District Prosecutors’ Office's first financial investigation department.
In an official announcement on Feb. 8, the team in charge of Wemade’s token WEMIX said that its digital asset storage system, Play Wallet and the Wemade-affiliated decentralized exchange PNIX DEX are exempt from compliance requirements mandating registration with authorities for virtual asset service providers.
Wemade is reportedly under investigation by South Korean prosecutors, focusing on suspicions of unfair profits by potentially circumventing regulations that mandate virtual asset service providers to register with authorities, according to local news reports.
