GameFi Token WEMIX Caught in Regulatory Crosshairs on Bithumb Exchange

• Bithumb keeps WEMIX under close watch following $6.2M token hack.  
• Wemade delayed disclosure by four days, citing security concerns.  
• DAXA will decide on WEMIX delisting by early May 2025.  

WEMIX, a blockchain gaming token, continues to face regulatory headwinds in South Korea due to a controversial hack and delayed communication by its issuer, Wemade. 

Now, Bithumb, one of the nation’s largest crypto exchanges, announced that it will extend WEMIX’s classification as a “closely monitored asset,” after recommendations by the Digital Asset eXchange Alliance (DAXA). 

That monitored status leads to a critical point: a final decision on whether to delist the token the week ending May 2nd. It’s a decision that could heavily impact South Korea’s GameFi ecosystem.

Why is WEMIX Facing Delisting Risk?

The scrutiny intensified after a February 28 security breach on the PlayBridge Vault, Hackers illegally withdrew over 8.65 million WEMIX tokens, worth about $6.2 million at the time. 

Critically, the WEMIX Foundation waited four days, disclosing the incident only on March 4th, triggering sharp backlash from the local crypto community. The delay led to speculation around transparency and risk management practices at Wemade, the parent company behind WEMIX.

Related: South Korean Court Orders Defunct GDAC to Return $7.3M in WEMIX to Wemade CEO

Addressing the disclosure delay, Kim Seok-hwan, CEO of WEMIX PTE. LTD., a Singapore-based Wemade subsidiary, defended the decision in a March 17th press conference. He said the delay was not an attempt to hide the breach, but rather a precaution taken to prevent further attacks and avoid widespread market panic. 

How Did the Market and Authorities Respond?

But despite that explanation, investor confidence seems damaged nonetheless. $WEMIX token dropped 39% from $0.70 to $0.42 after the hack, now trading at $0.66 . ‌

Complicating matters further, South Korea’s cyber police have now launched a formal investigation into the hack, which could further influence DAXA’s delisting decision. 

Related: South Korea Tightens Crypto Reins, Blocks Unregistered Apps on Apple Platform

If exchanges like Bithumb delist WEMIX, it could disrupt Wemade’s wider blockchain gaming plans, which rely heavily on the token for in-game economies and marketplace transactions.