QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
$6 220 000 USD
FEBRUARY 2025
GLOBAL
WEMIX NETWORK
DESCRIPTION OF EVENTS
WEMIX3.0, developed by WEMADE, marks a significant evolution in blockchain technology by offering a robust, EVM-compatible public chain based on a Stake-based Proof of Authority (SPoA) consensus. Backed by 40 trusted node partners and delivering up to 4,000 transactions per second, the platform supports decentralized applications, games, DAOs, DeFi, and NFTs. WEMIX3.0 introduces WEMIX$—a stablecoin collateralized by USDC—to reduce token price volatility, enhancing ecosystem stability. Core services include WEMIX PLAY (gaming), NILE (DAO), and decentralized finance, while its Ethereum-derived infrastructure ensures high compatibility and developer freedom.
The WEMIX breach occurred due to the theft of an authentication key used in the service monitoring system of the NFT platform NILE, which is connected to the WEMIX ecosystem.
The attacker obtained an internal system authentication key, which granted unauthorized access to critical systems. The key is believed to have been exposed when a developer uploaded sensitive materials to a public repository in mid-July 2023 for development convenience. This likely became the initial point of compromise.
Over a span of two months, the attacker meticulously planned the breach and eventually used the stolen key to forge abnormal transactions, leading to 15 withdrawal attempts, 13 of which succeeded.
Approximately 8.65 million WEMIX coins were illegally withdrawn and sold via overseas crypto exchanges.
WEMIX lost approximately 8.65 million WEMIX tokens, which was valued at around 6.22 million USD at the time of the breach in February 2025.
In response, WEMIX immediately shut down affected servers, began a forensic investigation, and reported the attack to the Seoul Metropolitan Police's cyber unit.
WEMIX shut down the affected servers right after detecting the breach to prevent further damage and secure the system. The team launched a detailed analysis of the breach and reported the incident to the Seoul Metropolitan Police's Cyber Investigation Unit for further investigation.
While there was a delay in the official announcement, WEMIX eventually acknowledged the incident publicly, apologizing for the communication delays and assuring that no attempt was made to conceal the breach.
WEMIX is integrating Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to enable a more secure USDC bridge and prevent similar vulnerabilities going forward.
The loss of 8.65 million WEMIX tokens has already affected the market, with the tokens being sold on exchanges. WEMIX is focused on addressing market volatility, and there are ongoing efforts to regain investor confidence and stabilize the token’s value.
The breach is under investigation by the Seoul Metropolitan Police's Cyber Investigation Unit. This includes tracking down the perpetrators and understanding the full scope of the attack.
WEMIX is working on resolving the depegging issue related to WEMIX$ by integrating Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to securely bridge USDC to the WEMIX 3.0 mainnet, which will help stabilize the ecosystem and prevent similar breaches in the future.
The WEMIX team has committed to better communication going forward. They have apologized for the initial delays and are working on providing more timely updates on the recovery efforts and any new developments.
WEMIX3.0, developed by WEMADE, introduces a robust, EVM-compatible blockchain platform that supports decentralized applications, games, DAOs, DeFi, and NFTs. It operates on a Stake-based Proof of Authority (SPoA) consensus, offering up to 4,000 transactions per second and incorporates WEMIX$, a stablecoin backed by USDC, to reduce token price volatility. However, a breach occurred when an authentication key for the NILE NFT platform was stolen after being exposed by a developer in a public repository. Over two months, the attacker successfully withdrew 8.65 million WEMIX tokens, valued at 6.22 million USD, which were sold on crypto exchanges. WEMIX responded by shutting down affected servers, launching a forensic investigation, and reporting the incident to authorities. They are working on integrating Chainlink’s CCIP for a more secure bridge and stabilizing the ecosystem. Ongoing efforts include addressing the market volatility, continuing the investigation, and improving communication with the community.
Gaming Platform WEMIX Hacked in February, Losing $6.22 Million; CEO Admits Delay in Notification but Denies Intentional Cover-Up - ODaily News (Apr 29)
WEMIX on Hacking Incident: "Announcement Delayed Due to Concerns Over Further Attacks and Market Impact" (Comprehensive) - Yonhap News Agency (Apr 29)
Wemix Network Documents (Apr 29)
Wemix Network Homepage (Apr 29)
Wemix Network - CoinMarketCap (Apr 29)
Wemix Network - "NFT network conversion resumes with enhanced security. We're committed to a full service restoration by March 21st. We apologize for the disruption and thank you for your patience." - Twitter/X (Apr 29)
Wemix Network - "The #WEMIX team has announced a 10 billion KRW #buyback plan to rebuild trust after the PLAY Bridge incident." - Twitter/X (Apr 29)
Partial Resume of the PLAY Bridge Service - WEMIX Communication (Apr 29)
Wemix Network - "We’ve successfully purchased KRW 10 billion worth of WEMIX to address the recent WEMIX PLAY Bridge incident." - Twitter/X (Apr 29)
Status Update on WEMIX$ - WEMIX Communication (Apr 29)
Wemix Network - "The #WEMIX Team has released an update regarding the WEMIX$ incident. These measures include integrating Chainlink's CCIP for USDC bridging." - Twitter/X (Apr 29)
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