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