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According to PANews news on July 28, according to BlockMedia, the South Korean game company Wemade tried to use "structural financial technology" to transfer the tokens owned by the foundation to a fund, lock them for a period of time, and then sell them to the on-site cryptocurrency for the second time. Exchange etc. They appear to be trying to opt for a side sale using financial means when an exchange sale is not feasible due to the WEMIX launch controversy.
According to the memorandum of transaction terms of structured financing obtained by BlockMedia, the memorandum seems to have been written in March this year, with a minimum investment of 300 million won and a lock-up period of one year, which is adjusted according to the amount. When the fund purchases tokens held by the Wemix Foundation, the discount rate is more than 20%. Earn a 20% profit even if the price of the WEMIX token remains unchanged for a year after the transaction. The fund offers a base rate of return of 10%, and investors pay a management fee of 1% to the fund. If the fund profit exceeds 10% when selling WEMIX tokens one year later, an additional 10% will be paid to the fund manager as a performance fee.
According to previous news, South Korean prosecutors have launched a comprehensive compulsory investigation of the market maker of WeMade, a listed game company in the country, and its WEMIX tokens, including seizure and search. The search and seizure was in response to a complaint filed by WEMIX investors with prosecutors on May 12, accusing the company of fraud, embezzlement and breach of trust.