The CEO of Wemix Foundation, Kim Seok-hwan, stated that there was no intention to hide a breach on their bridge that resulted in losses exceeding $6 million.
During a recent press conference, Kim reportedly mentioned that there was no effort to cover up the situation, despite attendees noting that the announcement was delayed.
On February 28, over 8.6 million WEMIX tokens were withdrawn following an attack on the platform’s Play Bridge Vault, which facilitates the transfer of WEMIX to various blockchain networks. The company did not make an official statement until four days post-attack.
According to Kim, the delay in communication was attributed to concerns about potential additional attacks and the desire to prevent market panic due to the theft of assets.
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CEO of Wemix discusses risks of early disclosure
Wemix reported that the hacker infiltrated their system by acquiring the authentication key for Nile, their non-fungible token (NFT) platform’s service monitoring system.
After the theft, the hacker took two months to prepare before initiating a series of unusual transactions. Attempts to withdraw were made 15 times, with the hacker successfully executing 13 of those withdrawals, ultimately taking 8.6 million WEMIX tokens and selling them on exchanges outside of South Korea.
Kim shared that as soon as they became aware of the hack, they promptly shut down their servers and initiated an analysis.
He also noted that a complaint had been filed against the unidentified hacker with the Cyber Investigation Team of the Seoul National Police Agency, which has already begun its investigation.
Kim expressed concerns regarding the dangers of an early announcement. He explained that if the method of infiltration remained unclear, there was a risk of further breaches.
Additionally, he emphasized that the market had begun to feel the impact of the sold assets, and any immediate disclosure could lead to panic selling.
During the press conference, the executive apologized to Wemix investors, taking responsibility for the decision to delay disclosure and acknowledging that he should be accountable if any adverse consequences arise.
WEMIX token plummets 39% following hack news
In spite of their efforts to mitigate market alarm, the WEMIX token experienced a nearly 40% decline from the day of the exploit until March 4, when the company finally revealed the details of the hack.
The token’s price dropped from $0.70 on February 27 to a low of $0.52 on February 28, further dropping to $0.42 by March 4. Currently, the cryptocurrency trades at $0.58, which remains 17% below its value prior to the hack.
WEMIX token price chart. Source: CoinGecko
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