On the same day, two negative developments occurred in the crypto industry: decentralized cloud storage project Storj entered Chapter 11 bankruptcy reorganization proceedings in the United States, while WEMIX, the blockchain platform of South Korean game company Wemade, confirmed a security incident in which approximately $6.25 million worth of abnormal tokens were minted and transferred.
Storj initiates bankruptcy reorganization
The company disclosed that Storj Labs voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of West Virginia on July 26. The company stated that this filing is primarily to address historical financial liabilities, and that normal operations will continue during the restructuring process, with no anticipated impact on customer service.
Storj has raised approximately $35 million in funding and is currently focusing its business on decentralized cloud storage while evaluating past acquisitions and non-core businesses to further streamline its structure.
WEMIX confirms contract privileges were stolen.
Meanwhile, WEMIX stated that the owner privileges of a smart contract related to the WEMIX stablecoin were compromised on the evening of July 26. The attackers subsequently minted and transferred approximately $6.25 million worth of abnormal WEMIX tokens on-chain.
According to the project team, the incident occurred at approximately 6:18 PM that day. The team has identified addresses suspected of being related to the attack and is continuously tracking the on-chain flow of related assets.
Platform links with exchange to track funds
WEMIX stated that it is currently working with major cryptocurrency exchanges and blockchain security companies to monitor the movement of funds involved in the case, and may also cooperate with law enforcement agencies if necessary.
The project team stated that as the investigation progresses, they will continue to disclose more details of the incident and subsequent handling measures. Based on current information, Storj's focus is on completing financial restructuring through legal proceedings, while WEMIX faces the challenge of asset tracking and risk control following the loss of smart contract permissions.
