Wemade to Fully Compensate $1.6 Million in Losses from Wemix Dollar Hacking Incident
500,000 WEMIX to Be Bought Back
Wemade will provide full compensation totaling approximately $1.14 million (about 1.6 billion won) to users who suffered losses as a result of last month’s hacking incident involving its stablecoin Wemix Dollar (WEMIX$).
On August 26, Wemade announced on the Wemix official website that it had conducted a comprehensive review of all transactions on Wemix 3.0 and Playchain, and determined the compensation amount in proportion to the actual losses incurred.
The compensation will be provided to holders of WEMIX$ and liquidity pool depositors just before the incident, as well as users who suffered losses during transactions at the time of the hack, covering around 170,000 addresses in total. Instead of WEMIX$, the victims will receive an exchange token called 'eqWEMIX$' and similar alternatives. Once related services resume, eqWEMIX$ can be exchanged on a 1:1 basis for the US dollar-pegged stablecoin USDC.e.
The hacking incident occurred on July 26, when administrator privileges for the smart contract used for issuing WEMIX$ were transferred to the attacker. A total of 5,225,525 WEMIX$, equivalent to about 7.7 billion won, was fraudulently issued. Investigations found that the attacker exploited a vulnerability where access restrictions to the administrator registration function had not been properly set.
Wemade assessed that, as a result of this incident, the maximum amount of WEMIX that could be released to the market is about 160,000. To minimize negative impact, the company decided to buy back more than three times that amount, totaling 500,000 WEMIX. However, it clarified that cases where assets were acquired through transactions related to the unauthorized issuance would be excluded from compensation.
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Payments and exchanges will be processed in bulk once a week, and specific details regarding the compensation schedule and application procedures will be announced at a later date.
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