Jang Hyun-guk, 'WEMIX Circulation Manipulation Allegations' First Trial Verdict Today

The first trial verdict for Jang Hyun-guk, CEO of Nexsus, will be held on the 15th (KST). Jang is accused of manipulating the circulation of WEMIX, a cryptocurrency, to boost the share price of Wemade.

According to the industry, the 13th Criminal Division of the Seoul Southern District Court will deliver its first-instance verdict on Jang Hyun-guk and Wemade’s alleged violations of the Capital Markets Act at 2 p.m. today. The prosecution previously sought a five-year prison sentence for Jang. Additionally, fines of ₩200 million for Jang and ₩500 million for Wemade were requested.

Jang is accused of selling ₩300 billion worth of WEMIX after announcing in 2022, when he was the CEO of Wemade, that he would ‘suspend WEMIX token liquidity,’ resulting in unfair trading and market manipulation.

Prosecutors claim that Jang inflated Wemade’s share price and WEMIX’s market value with a misleading announcement and subsequently manipulated WEMIX’s circulation, causing investor losses. In the final hearing in April, prosecutors argued, "The defendant’s actions ultimately led to the delisting of WEMIX and significant losses for numerous investors."

Jang’s side maintains that the announcement to ‘suspend liquidity’ only referred to on-market sales via exchanges and that selling through the crypto asset investment manager Hyperithm does not fall under that category. They explain that WEMIX was converted to other digital assets and used for the development of the crypto and blockchain ecosystem.

At the final hearing, Jang stated, "The circulation of WEMIX was strategic fundraising to build the ecosystem," adding, "If transparent disclosures still result in criminal penalties simply because the outcomes weren’t favorable, it will be impossible for any new technology to take root in the Korean market."