Korean Court Orders Wemade to Pay KRW 99.39B Over WEMIX Token Payout
South Korea’s Seoul Central District Court has ruled that Wemade must compensate 27 former employees approximately KRW 99.39 billion for failing to deliver promised WEMIX tokens. The plaintiffs, who filed the suit in July last year, originally sought KRW 161.76 billion in damages. Wemade created its blockchain subsidiary, Wemade Tree, in 2018 and merged it back into the parent company in 2022. The WEMIX Foundation now handles all token-related functions. This judgment highlights legal and fiscal risks around employee compensation tied to crypto promise, potentially affecting Wemade’s liquidity and WEMIX token distribution.
Bearish
The court ruling forces Wemade to settle a KRW 99.39 billion liability, which may strain its cash flow and delay further development or distribution of WEMIX tokens. Similar legal awards in the crypto sector have led to sell-offs and credit concerns. In the short term, traders might see heightened selling pressure on WEMIX as the company allocates funds to cover the judgment. Long term, lingering legal risks could weigh on investor confidence and suppress token demand, suggesting a bearish outlook for both Wemade’s financials and WEMIX market performance.