According to Foresight News, South Korean game company Wemade is being investigated by the Seoul Southern District Prosecutor's Office for allegedly evading reporting obligations as a virtual asset enterprise and obtaining huge profits outside of legal permissions. Prosecutors are currently examining whether the decentralized exchange PNIX and its digital asset storage system Play Wallet, both affiliated with Wemade, have concealed private keys from users.
In response, South Korean blockchain gaming platform WEMIX stated that the virtual asset exchange services provided through wallet services and Phoenix Dex do not belong to the category of virtual asset operators that should be reported.