Wemix denies cover-up amid delayed $6.2M bridge hack announcement

Wemix Foundation CEO Kim Seok-hwan stated that the company had no intention of concealing a hack on its bridge that resulted in over $6 million in losses. The hack occurred on February 28, with over 8.6 million WEMIX tokens withdrawn due to an attack on the platform's Play Bridge Vault. The company made an official announcement four days after the attack, which was delayed according to Kim, to avoid causing panic in the market and to prevent further attacks. The hacker broke into the system by stealing the authentication key for the company's service monitoring system of Nile, its non-fungible token platform. After the theft, the hacker spent two months preparing before creating abnormal transactions, attempting to withdraw 15 times and succeeding with 13 withdrawals. Upon becoming aware of the hack, the company immediately shut down their servers and began their analysis, and also filed a complaint against the unidentified hacker with the Cyber Investigation Team of the Seoul National Police Agency. Kim explained that making a premature announcement would have risked exposing the company to further attacks and causing market panic. The WEMIX token dropped by nearly 40% from the day of the exploit to March 4, when the company finally announced the hack, and is still trading below its pre-hack price. Kim apologized to Wemix investors, saying that the disclosure delay was his call and that he should be held responsible if anything goes wrong. The company's decision to delay the announcement was made to protect the market, but it ultimately had a significant impact on the WEMIX token price, which is still recovering from the drop.