In an ongoing investigation, Wemade, a significant South Korean game developer, valued at 1.6 trillion Korean won ($1.2 billion), is under scrutiny by local prosecutors. The investigation is centered around allegations of unfair profits and potential evasion of regulations requiring virtual asset service providers to register.

South Korean regulations mandate registration and reporting for crypto service platforms, excluding those not sharing control over user assets by providing private keys. Wemade, known for its transition from a game developer to issuing its own token $WEMIX, and blockchain mainnet, contends that the company is exempt from reporting requirements.

Wemade and Chainlink CCIP

Wemade only recently made a significant step towards achieving secure cross-chain interoperability by announcing the integration of Chainlink CCIP into its omnichain protocol Unagi on the Wemix 3.0 mainnet.

Unagi(x), described as Unagi's interoperability engine, now features Chainlink CCIP, aiming to facilitate seamless connectivity between various blockchains. Wemade's native Wemix 3.0 blockchain currently supports nine blockchains, including Arbitrum, Avalanche, BNB, Ethereum, Klaytn, Kroma, Optimism, Polygon, and Wemix 3.0 itself.

This integration holds strategic importance as it precedes the global launch of Wemade's highly anticipated MMORPG, Night Crows, scheduled for Tuesday, March 12th. Through the collaboration of Unagi(x) and Chainlink, Night Crows will support interoperability across six chains: Wemix 3.0, Kroma, Avalanche, BNB Chain, Ethereum, and Polygon. The Una wallet will serve as the gateway for players to experience a connected gaming environment.

Night Crows' Sucess in Korea

The web3 MMORPG, Night Crows, will be launching soon worldwide following its initial success in South Korea. The fantasy game, co-developed with South Korean studio Madngine, has garnered attention for its innovative multi-chain technology.

After a debut in South Korea, Night Crows swiftly ascended the charts on both Google Play and the Apple App Store, accumulating over $151 million in in-app purchase (IAP) sales within just seven months. This remarkable success solidifies Night Crows as one of Wemade's flagship IPs.

Legal Allegations

Prosecutors are examining whether Wemade-affiliated decentralized exchange, PNIX, and its digital asset storage system, Play Wallet, deliberately withhold private keys from users. The investigation aims to determine if PNIX and Play Wallet services breach mandates by allegedly evading reporting duties for platforms not granting users private keys.

The Financial Intelligence Unit, the local financial sector's supervisor, has also initiated an investigation based on similar complaints. Responding to the allegations, Wemade’s WEMIX team released an official statement, asserting that PNIX DEX and Play Wallet services are not subject to compliance requirements.

Public Statement 

The statement emphasizes Play Wallet as a decentralized service, highlighting the team's lack of control over users' private keys or assets. The team further clarifies that PNIX offers a decentralized trading platform processing buy and sell orders, with assets awaiting transactions stored in smart contracts outside the operator’s purview.

While the statement does not explicitly confirm whether the two services provide users with private keys, Wemade maintains its stance that Play Wallet and PNIX services fall under the exemption from reporting duties. As the investigation unfolds, the outcome will likely shape the future regulatory trajectory for Wemade's ventures in the evolving web3 landscape.