Wemix Foundation CEO Kim Seok-hwan has addressed the delayed disclosure of the February 28 security breach and confirmed that full services will resume on March 21.
Details of the Security Breach
During a press conference on March 17, Kim Seok-hwan discussed the security incident that affected Wemix Foundation’s “Play Bridge Vault” crypto wallet, which facilitates transfers of WEMIX tokens across different blockchains. The breach resulted in the unauthorized withdrawal of approximately 8.6 million WEMIX tokens, valued at around $6.04 million (8.75 billion won).
Upon detecting the breach, Wemix immediately shut down the affected server and reported the incident to the Cyber Investigation Team of the Seoul National Police Agency. However, the foundation did not publicly disclose the hack until March 4, leading to criticism from investors and the broader crypto community.
CEO’s Justification for the Delay
Seok-hwan acknowledged the delayed announcement, explaining that the decision was made to prevent further attacks and avoid panic selling. He emphasized that disclosing the breach too soon, without fully identifying the method of infiltration, could have exposed the platform to additional risks.
This is not the first time the Wemix Foundation has faced scrutiny over information disclosure. In October 2022, the Digital Asset Exchange Joint Consultative Body (DAXA) warned investors to be cautious about WEMIX due to inconsistencies in the reported circulation volume.
Service Resumption and Market Stabilization Measures
To enhance security, the foundation is conducting a comprehensive investigation into the breach and relocating all blockchain-related infrastructure. Full service resumption is scheduled for March 21.
To stabilize the market, Wemix Foundation has launched a series of buyback initiatives. On March 13, the company announced a 10 billion won buyback, followed by an additional acquisition of 20 million WEMIX tokens. These efforts aim to mitigate the impact of the security breach and restore investor confidence.
Market Reaction
Following the disclosure of the hack on March 4, the WEMIX token initially closed at $0.45. Since then, it has risen to $0.57, according to CoinGecko. However, the token remains down by 3% on the daily timeframe.
As Wemix Foundation moves forward with its recovery plan, investors will be closely monitoring the effectiveness of its security upgrades and market stabilization strategies.
