Wemix Foundation Faces $6.04M Hack, Token Drops 3%

Wemix Foundation, a prominent player in the blockchain industry, recently faced a significant security breach that has sparked public and investor outrage. The incident, which occurred on February 28, involved the unauthorized withdrawal of approximately 8.6 million WEMIX tokens from the company's "Play Bridge Vault" crypto wallet. The value of the stolen tokens was around $6.04 million. The company's CEO, Kim Seok-hwan, addressed the issue during a press conference on March 17, acknowledging the tardy disclosure of the hack.

The delay in announcing the breach was met with disapproval from the public and investors. Kim Seok-hwan explained that the delay was intended to prevent additional attacks and panic selling. He also acknowledged previous criticisms regarding the transparency of the Wemix Foundation and pledged to improve security procedures moving forward. The company took immediate action by shutting down the compromised server and notifying the Cyber Investigation Team of the Seoul National Police Agency about the intrusion.

In response to the security breach, Wemix Foundation has been actively tracing the intrusion method and migrating its blockchain infrastructure to prevent future incidents. The company has assured that normal services will resume on March 21. Additionally, to restore investor trust, Wemix Foundation has launched various buyback programs. On March 13, they announced a buyback of 10 billion won, followed by another purchase of 20 million WEMIX tokens.

Despite the controversy, the WEMIX token has shown some recovery. The token's price rose from $0.45 on March 4, when the hack was announced, to $0.57 at the time of the press conference. However, the token is still down 3% on the daily chart. The Wemix Foundation aims to build greater trust with improved security measures and greater transparency going forward.