Wemade Reportedly Owes $41M in Taxes Amid Recent $100M Web3 Fund Establishment
Summary:
South Korean gaming company Wemade has disclosed a debt of 53.7 billion won ($41 million) in unpaid taxes, unrelated to its recent establishment of a $100 million Web3 fund with Singapore's Whampoa Group. The tax debt is linked to WEMIX tokens issued by Wemade Tree from 2019 to 2022 and is set to be cleared by 2024. WEMIX tokens have given a 635% return since their 2020 launch and fuel Wemade's Web3 application network. Despite its previous ban on initial coin offerings, South Korea is considering legalizing and taxing them. Wemade and Whampoa Group recently established a $100 million Web3 fund to invest in Middle Eastern digital asset initiatives.
Following the recent inauguration of a $100 million Web3 fund in partnership with the Whampoa Group of Singapore, Wemade, the South Korean gaming corporation, has admitted to owing the national tax body a debt of 53.7 billion won ($41 million), an event separate from the fund launch. This unsettled tax charge equates to around 10% of the firm's equity. As detailed in a Jan. 3 document on KOSDAQ, the owed taxes are connected to WEMIX tokens, which were released by Wemade's affiliate company, Wemade Tree, between the years 2019 and 2022. Wemade clarified the tax debt, stating, "the 'imposed amount (KRW)' is the combination of the figures in the tax audit result notice issued to our firm and Wemade Tree Co., Ltd," and confirming the balance will be settled within the legally mandated timeframe by Feb. 29, 2024. Reported sources claim that the tax regulators have imposed a fine up to 50 billion won ($38 million). Initially released in 2020, WEMIX tokens have seen a rise of 635% since their launch and currently have a trading value of $2.64, boasting a diluted market cap of $2.5 billion. This is an Ethereum Virtual Machine compatible system that fuels Wemade's Web3 application network. In 2017, South Korea put a prohibition on initial coin offerings, though it is now considering repealing the ban and potentially levying a 20% tax on gains from crypto trades. On Dec. 22, 2023, Wemade set in motion a $100 million Web3 fund alongside the Whampoa Group, with the intention of driving investment in digital assets in the Middle East. As a part of this joint endeavor, Whampoa Digital will be a partner in Wemade’s Wemix Play Center situated in Dubai International Financial Centre (DIFC) Innovation Hub, and the fund capital will assist Wemix Play developers.
Published At
1/3/2024 6:48:38 PM
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