Late Disclosure Sparks Anger
Wemix Foundation CEO Kim Seok-hwan addressed the tardy disclosure of a security breach that occurred on February 28 during a press conference on March 17. The hack of Wemix’s “Play Bridge Vault” crypto wallet led to the unauthorized withdrawal of around 8.6 million WEMIX tokens, valued at around $6.04 million (8.75 billion won).
The company shut down the compromised server as quickly as it could and notified the Cyber Investigation Team of the Seoul National Police Agency regarding the intrusion. However, the incident was not disclosed until March 4, to the disapproval of the public and investors.
Reasons for the Delayed Disclosure
Kim Seok-hwan stated the delay was to prevent additional attacks and panic selling. He acknowledged previous criticism regarding Wemix Foundation’s transparency and pledged improved security procedures.
Security Updates and Resume of Services
Wemix Foundation is tracing the intrusion method actively and migrating blockchain infrastructure to prevent future intrusions. Normal services will be resumed on March 21, as assured by the CEO.
Market Stabilization Measures
In order to restore investor trust, Wemix Foundation launched various buyback programs. On the 13th of March, they announced that they were buying back 10 billion won, followed by another purchase of 20 million WEMIX tokens.
WEMIX Token Performance
Despite the controversy, WEMIX’s price has somewhat recovered. It rose from $0.45 on Mar. 4 (when the hack was announced) to $0.57 at the time of writing, based on CoinGecko data. The token is still down 3% on the daily chart, though.
The Wemix Foundation aims to build greater trust with improved security measures and greater transparency going forward.
