Korean prosecutors simultaneously raided WeMade, the issuer of the WEMIX cryptocurrency, and Hyperism, the asset management company responsible for WEMIX’s market making. This incident comes just after the South Korean parliament passed the Virtual Asset Protection Law, which aims to crack down on illegal business practices such as market price manipulation and insider trading.

The raid was carried out at the Hyperism headquarters, located in Gwanak-gu, Seoul. An official from Hyperism confirmed that the prosecution was conducting a search in relation to WEMIX. The office was hermetically sealed, with the front glass door and the outer iron door firmly closed.

The Financial Investigation Department 1 of the Seoul Southern District Prosecutor’s Office launched the search at the WeMade headquarters in Bundang-gu, Seongnam-si, Gyeonggi-do. The investigation also extended to WEMIX’s market makers.

Earlier, WEMIX investors had filed a complaint against Hyun-guk Jang, the representative of WeMade, accusing him of fraud and fraudulent unfair trading under the Capital Market Law on May 12.

In 2021, WeMade had invested in Hyperism through its specialized blockchain subsidiary, WeMade Tree. WeMade was reported to have invested KRW 5.2 billion of the funds raised from the sale of WEMIX and subsequently paid 18 million of WEMIX to the Hyperism Eco Fund.