Legal Turmoil at WeMade: Employees Stand Firm Over Unpaid Altcoin Bonuses
In a significant development within the cryptocurrency sector, twenty-seven current and former employees of WeMade’s blockchain division have initiated a legal battle against the gaming powerhouse for allegedly failing to pay out promised altcoin bonuses. This lawsuit, reported by Hyundae Kyungjae Shinmun, centers around performance-based bonuses linked to the company’s flagship WEMIX token.
Employees Seek Justice for Unpaid Bonuses
The drama unfolded on January 7 at the Seoul Central District Court’s Civil Division, where lawyers for both the aggrieved employees and WeMade clashed in what was described as a “fierce battle.” The plaintiffs, some of whom are still on WeMade’s payroll, are collectively seeking approximately $11 million in damages. The group primarily consists of employees from Wemade Tree, which previously operated as WeMade’s blockchain arm before its merger with the parent company in February 2022.
WEMIX token prices since 2021. Source: CoinGecko
Verbal Contracts and Promises — The Core of the Dispute
According to the legal representatives for the employees, the plaintiffs assert they played a crucial role in the development of the WEMIX token and had entered into a WEMIX development compensation agreement that required a minimum of three years of employment to qualify for bonuses. Furthermore, the plaintiffs claim to have received a clear email from the company promising token compensation.
In contrast, WeMade’s legal team contends the employees are basing their claims on an alleged “verbal contract” regarding their bonuses. The firm’s attorneys refute the existence of any such verbal agreement and maintain that they merely provided general guidance about compensation frameworks that were still being tested, especially in the nascent field of crypto accounting.
The WeMade team has expressed concerns that offering crypto bonuses could be burdensome, given the absence of established industry standards at that time. They reiterated their commitment to potentially launching a WEMIX token bonus program, contingent upon further discussions with employees.
Judicial Response: A Call for Mediation
The presiding judge acknowledged the plaintiffs’ claims exhibit a certain “weakness,” especially due to the lack of a signed contract. Nevertheless, the judge raised an eyebrow at WeMade’s assertion that it could not compensate employees purely based on the absence of a formal agreement, labeling it as “abnormal.”
As a way forward, the judge has recommended both parties explore mediation, while also ordering WeMade to formulate and present a comprehensive compensation plan by mid-March. The courtroom will reconvene on March 21 to revisit the case.
Why It Matters: The Implications for the Crypto Sector
This legal dispute is pivotal, not just for WeMade, but for the broader cryptocurrency industry in South Korea and beyond. As companies grapple with the volatile nature of crypto currencies and the legalities surrounding employee compensation in this space, the outcome of this case may set a precedent for how blockchain firms manage their compensation strategies. Failure to uphold commitments could lead to reputational damage and potential regulatory scrutiny.
Expert Opinions: Perspectives from the Legal Field
Legal experts following the case suggest that the ruling could impact how blockchain companies draft employment contracts and handle performance-based incentives moving forward. They argue that the ambiguity surrounding verbal agreements in the crypto realm underscores the necessity for more robust legal frameworks and clearer communication between companies and their employees.
Future Outlook: WeMade’s Blockchain Aspirations
Despite the turmoil surrounding this lawsuit, WeMade remains focused on bolstering its blockchain initiatives. Earlier this year, the company set forth plans to deepen its investment in blockchain technology and integrate decentralized social communities into its operations further. Known predominantly for its legendary game series, the outcome of this legal battle could influence WeMade’s strategy as it navigates the complexities of the blockchain landscape.
As the world watches closely, the resolution of this high-stakes case may well shape the future of compensation models in the cryptocurrency sector.