WeMade Faces Legal Dispute over WEMIX Bonus Payments Amid Employee Claims

Introduction

The gaming industry continues to evolve, with virtual assets taking center stage. A recent civil lawsuit involving South Korea's WeMade and its virtual asset WEMIX highlights the complexities surrounding compensation and contractual agreements in this space.

Background of the Lawsuit

The lawsuit, initiated by former and current employees of WeMade's subsidiary WeMadeTree, is centered around claims related to performance bonus payments for the development of WEMIX. The case was brought before the Seoul Central District Court's Civil Division 42, where the first preparatory hearing took place recently.

Claims of the Plaintiffs

• Employees allege they had a compensation agreement concerning the development of WEMIX.
• Support for their claims includes emails from the company that indicate a promise of compensation.

WeMade's Response

In contrast to the employees’ claims, WeMade firmly denies any existence of a verbal agreement regarding compensation. The company acknowledges only that it had informed employees about a basic compensation plan without formalizing it into a contract. The reasoning behind this approach includes:

• Legal uncertainties surrounding the management of virtual assets.
• Concerns of potential criminal breach of trust risks for management if compensation was formalized.

Court Proceedings

During the court proceedings, the judges pointed out the absence of a written contract from the plaintiffs. However, they remarked that it was unreasonable for WeMade to refuse any compensation entirely. This emphasizes the delicate nature of contractual agreements in the ever-changing landscape of virtual assets.

Next Steps in the Lawsuit

The next court hearing has been scheduled for March 21 in the morning. Moving forward, it is expected that WeMade will continue to negotiate a specific compensation agreement with its employees, demonstrating a willingness to address the issue outside of the courtroom.

Conclusion

This case underlines the importance of clear and formalized agreements in the gaming industry, particularly when it involves virtual assets. The outcome of this lawsuit could set a precedent for how similar disputes will be handled in the future. As virtual assets continue to gain popularity, companies must ensure they navigate the legal complexities associated with them to prevent misunderstandings with employees.