Jang Hyun-guk, former CEO of WEMADE, has been acquitted in the first trial over allegations that he manipulated the supply of WEMIX, a blockchain-based cryptocurrency. The ruling marks one of the first official court decisions in South Korea affirming that cryptocurrencies are not subject to the Capital Markets Act, signaling far-reaching implications for the digital asset industry.
The 13th Criminal Division of the Seoul Southern District Court (Presiding Judge Kim Sang-yeon) ruled Jang not guilty of violating capital market laws. The court stated, “WEMIX, the asset in question, is a virtual asset, not a financial investment product as defined under the Capital Markets Act. Therefore, the law does not apply in this case.”
Prosecutors had alleged that Jang misled investors by announcing a halt in WEMIX liquidation in early 2022, thereby encouraging them to continue holding the asset. Despite that public stance, around KRW 300 billion worth of tokens were allegedly sold off. The prosecution argued this act was intended to inflate WEMADE’s stock price.
However, the court rejected the claim, ruling1 that “crypto assets and stocks operate in entirely separate markets” and that “changes in the supply or price of WEMIX do not directly determine fluctuations in WEMADE’s stock price.” The ruling emphasized that virtual assets, unlike stocks, are currently outside the scope of South Korea’s capital market regulations.
This decision is being viewed as a landmark case regarding the legal status of cryptocurrencies in Korea. While virtual assets remain in a regulatory gray area domestically, this court ruling implicitly acknowledges the lack of a clear legal framework—underscoring the need for reform.
Following the verdict, Jang stated, “This baseless case has caused misunderstandings for too long,” and added, “The ruling gives us a fresh opportunity to resume various partnerships and projects that had been on hold.”
Since Jang’s resignation in late 2024, WEMADE has rebranded as NEXUS and continues to expand its focus on blockchain gaming and the broader Web3 ecosystem.
Industry observers suggest that while the ruling may offer short-term positive sentiment for WEMIX and WEMADE-linked tokens, it also serves as a clear reminder that comprehensive regulation for virtual assets remains urgently needed.
