- Wemix CEO Kim Seok-hwan has rejected allegations that it attempted to hide a $6 million hack
- Wemix Foundation suffered the security breach three weeks ago, resulting in the loss of over 8.6 million WEMIX tokens
- The WEMIX token plunged nearly 40% since the hack was revealed
Wemix CEO Kim Seok-hwan has strongly denied allegations that the company attempted to cover up a $6 million security breach, insisting that the delay in disclosure was necessary to prevent further attacks. The hack, which took place on February 28, was only revealed four days later, sparking backlash from investors. Following the news, the WEMIX token plunged nearly 40% as concerns over transparency and security mounted.
Delayed Announcement Fueled Coverup Speculation
The hack, which took place on February 28, 2025, involved the theft of 8.6 million WEMIX tokens from the company’s blockchain infrastructure. Instead of making an immediate public announcement, Wemix chose to disclose the breach on March 4, 2025, a delay which led to backlash from users, some of whom believe the company was attempting to hide the security failure. The coins were stolen from the project’s bridge, where coins are swapped from one network to another.
Following weeks of criticism, Kim Seok-hwan has finally opened up about the reason for the delay, claiming it was because the foundation needed time to identify the vulnerability and prevent further damage. In a press conference, Kim stated the reasons for the delay:
There was a risk in making a premature announcement. If we had revealed the breach before understanding how it happened, it could have invited additional attacks. We understand the concerns of our community. While the decision to delay the announcement was difficult, it was made with the intention of protecting our platform and users.
Market Shows Lack of Confidence
Kim’s explanation doesn’t seem to have gone down all that well if the price of the WEMIX token is any guide; the token dropped nearly 40% following the revelation of the hack two weeks ago and remains significantly below its pre-hack value. Many commenters expressed frustration over the delay in disclosure, arguing that they were left uninformed while the market responded to rumors. Transparency concerns have also been raised, with critics questioning whether Wemix prioritized damage control over investor trust.
In response to the breach, Wemix has disabled compromised servers and launched an internal investigation. The company has also reported the incident to the Seoul National Police Agency’s Cyber Investigation Team, which is now looking into the attack. Preliminary findings suggest that hackers obtained an authentication key from Nile, Wemix’s NFT platform, and executed the attack after a two-month planning period.
Despite Kim’s reassurances, the incident may leave a lasting impact on Wemix’s reputation, with investors now closely watching how the company handles future security threats.
